IRLF 


REPORT 


OF 


Illinois 

Pension  Laws 
Commission 


1916 


[Printed    by   :nnhnrity    of   Ilie   fltaio   of   Illinois.] 


GIFT  OF 
Dr.    H. P. Bates 


DOCUMENT* 
DEPT. 


REPORT 


°F 

i  Illinois 

*) 

Pension  Laws 
Commission 

PART    I.   Investigations  With  Certain  Comparative  Studies 

PART  II.   Underlying  Principles  and  Specific  Recommen- 
dations for  a  Revised  Pension  Plan 


PART  I. 


[Printed  by  authority  of  the  State  of  Illinois.] 


SCHNEPP  &  BARNES,  STATE  PRINTERS 

SPRINGFIELD,  ILL. 

1917. 


"in 


111. 


CONTENTS. 

PAGE. 

Act  providing  for  investigation  of  the  pension  laws  of  Illinois 1 

Members   of  the   Illinois   Pension   Laws   Commission 2 

Letter,    transmitting   report   to   Governor 3 

CHAPTER  I.— INTRODUCTORY. 

Procedure    5 

Duties  imposed  on  Commission 5 

Plan  followed  in  investigation  of  operation  of  pension  laws  enacted  in  this  State.  6 
Plan  followed  in  collection  of  information  as  to  the  present  and  probable  future 

cost  of  maintaining  funds 6 

Present  costs    7 

Future  costs 7 

Plans  followed  in  collection  of  information  regarding  the  operation  of  pension 

laws  in  other  states  and  countries 8 

Plan  followed  in  determining  on  recommendations 9 

Existing  pension  laws  in  Illinois 10 

Existing  pension  funds  in  Illinois 10 

DETAILS  OF  PRESENT  AND  PROBABLE  COST  OF  MAINTAINING  THE  CHIEF  EXISTING 
PENSION  FUND  IN  THIS  STATE  : 

The  Police  Fund  of  Chicago 11 

The  Firemen's  Fund  of  Chicago 13 

The  Teachers'    Fund    of   Chicago 15 

The  Municipal  Employees'  Fund  of  Chicago 17 

The  Illinois  State  Teachers'  Pension  and  Retirement  Fund 17 

Extent  of  present  and  possible  future  pension  legislation  for  public  service 

employees  in  Illinois 18 

CHAPTER   II.— THE   OPERATION   OF   PENSION   LAWS    IN   FOREIGN 

COUNTRIES. 

Purpose  of  the  chapter ;  19 

Comparison  of  pension  conditions  in  the  United  States  and  Europe 1 

Origin  and  growth  of  pension  systems 20 

Method  of  procedure 20 

GREAT  BRITAIN  : 

Early  experiments  in  civil  service  pensions 21 

Laws  in  force  from   1829   to  1857 21 

Laws  in  force  from  1859  to  1909 22 

The  Courtney  Commission — 1902 32 

The  present  law— Act  of  1909 22 

Pensions  and  gratuities  to  London  metropolitan  police 2 

A  pension  as  deferred  pay 23 

Contributory  and  noncontributory  pensions  in  Great  Britain 24 

Cost  of  pensions  in  Great  Britain  as  a  percentage  of  corresponding  salaries 

for  active  staff    24 

Views  held  in  the  light  of  the  experience  of  Great  Britain 24 

Comparison  with  pensions   under   Illinois  Law 25 

Teachers'  pensions  in  Great  Britain 26 

Old  age  pension  system  of  Great  Britain  and  Ireland 27 

GERMANY  : 

Civil  service  pensions 29 

Officers  of  the  Empire 29 

Officers    of   confederated    states 30 

Officers   of   cities 30 

Comparison  with  conditions  in  England 30 

Old  age  or   industrial   pensions 31 

AUSTRO-HUNGARY  : 

Civil  service  pensions 31 

Enumeration  of  systems  with  methods  of  meeting  the  cost  of  pensions 32 

FRANCE : 

System  of  pensions 32 

NEW  ZEALAND: 

Civil  service  pensions 33 

The   general   law   of    1907 33 

Old  age  pensions t 34 

General  summary  and  conclusions 34 


IV 

CONTENTS— Continued. 

CHAPTER  III.— HISTORICAL  SKETCH  OF  THE  PENSION  LAWS   OF 

ILLINOIS. 

PAGE. 

General  survey  of  the  field 36 

Sources  of  revenue 38 

Refunds 39 

Age  and  period  of  service 39 

Pensions  to  survivors 40 

CHAPTER  IV.— SURVEY  OF  PENSION  LAWS  IN  FORCE  IN  ILLINOIS 
JANUARY,  1916,  FOR  PUBLIC  SERVICE  EMPLOYEES  AND  COMPARA- 
TIVE REFERENCES  TO  PROVISIONS  IN  PENSION  LAWS  IN  OTHER 
STATES  FOR  SUCH  EMPLOYEES. 

Pension  funds  for  public  service  employees  in  the  United  States  enumerated 43 

Management 48 

SOURCES  OF  REVENUE  : 

Contributions  from  employees 49 

Contributions  from  sources  other  than  from  salaries  of  employees 50 

Combination   of   all   sources 52 

Limitation  of  payments  by  employees 52 

Refunds 53 

Conditions  for  pension — service  ;  age 54 

Conditions  for  pension — disability 58 

Amount   of   pension   per   year -„ 60 

Provisions  for  discontinuance  of  pension 64 

WIDOWS  OF  EMPLOYEES  : 

Conditions  for  pension ;    amount   of   pension   per   year ;    provisions   for   dis- 
continuance   of    pension 64 

NATURAL  CHILD  OR  CHILDREN  OF  EMPLOYEES  : 

Conditions  for  pension  ;  amount  of  pension  per  year ;  provisions  for  discon- 
tinuance of   pension    68 

Other  dependents  of  employees 70 

Additional  data    71 

CHAPTER   V. — ACTUARIAL   REPORT. 

General   introduction    72 

Necessity  for  separate  report  on  each  fund 73 

Plan  followed  in  determination  of  future  costs 73 

Data  required  for  determination  of  future  costs 73 

General  statement  as  to  collection  of  data 74 

Difficulties  encountered  in  collecting  data  for  investigation  of  funds 79 

Plan  of  investigation  of  fund 79 

Reason  for  table  giving  yearly  valuation 80 

Rate  of  interest  assumed  in  Balance  Sheet 80 

The  treatment  in  the  Balance  Sheet  of  Sources  of  revenue  other  than  employees' 

contributions 80 

Predicted  costs  may  not  coincide  with  actual  costs 81 

Growth  of  city  not  considered 81 

THE  POLICE  FUND  OF  CHICAGO  : 

The  Benefits 81 

Determination  of  rates  of  changes  on  which  cost  of  pension  depends 82 

Active  service  table  and  salary  and  pension  scales 87 

Classes  of  pensioners,  present  and  future 91 

Widow   pensioners 9 

Children  pensioners 91 

All  pensioners  on  pension  roll,  January  1,  1916,  together  with  their  depend- 
ents eligible  for  pension  upon  death  of  any  such  pensioner  (Table  XII)  ....    96 
All  who  enter  service  after  January   1,   1916,  together  with  their  surviving 

dependents  eligible  for  pension   (Table  XIV) 100 

Totals  of  Tables  XII,  XIII  and  XIV 101 

The   Balance   Sheet 103 

Significant  observations  from  table  of  rates 92 

The  pensioners  who  will  come  from  future  entrants  into  the  active  service  .    93 

Present   and   future   costs 93 

Comparative  costs  for  disability  pensioners  and  for  service  pensioners 93 

Comparative  costs  for  pensions   to  men  and   to  their  widows 93 

Comparative  costs  for  different  classes  of  widows 94 

Reserves  for  the  future  force 94 

Percentage  of  salaries  required  from  future  entrants  to  provide  pensions  if 

the  pensions  were  totally  contributory 94 

Reserves  on  the  basis  of  experience 94 

Valuation  Balance  Sheet 94 

THE  FIREMEN'S  FUND  OF  CHICAGO  : 

The  Benefits 10 

Determination  of  rates  of  changes  on  which  costs  of  pensions  depend 105 

Active  service  table  and  salary  and  pension  scales 108 

Classes   of  pensioners,   present  and   future 112 


CONTENTS— Continued. 

PAOK. 

Widow  pensioners H 

Children    pensioners 11 

Dependent  parents .  .112 

All  pensioners  on  pension  roll,  January  1,  1916,  together  with  their  depend- 
ents eligible  for  pension  upon  death  of  any  such  pensioners  (Table  XXX)  .113 
All  in  active  service,  January  1,  1916,  together  with  their  surviving  depend- 
ents eligible  for  pension   (Table  XXXI) 113 

All  who  enter  service  after  January  1,  1916,  together  with  their  surviving 

dependents    eligible    for    pension    (Table    XXXII) 113 

Totals  of  Tables  XXX,  XXXI  and  XXXII 11 

The  Balance   Sheet .  .11 

Comparison   of  rates   between   firemen   and   policemen 11 

The  pensioners  who  will  come  from  future  entrants  into  the  active  service.    .113 

Present    and    future    costs 114 

Comparative  costs  for  disability  pensioners  and  for  service  pensioners 114 

Comparative  costs  for  different  classes  of  widows Ill 

Percentage  of  salaries  required  from  future  entrants  to  provide  pensions  ir 

the  pensions  were  totally  contributory 114 

Reserves  on  the  basis  of  experience 115 

Valuation  Balance  Sheet 115 

THE   TEACHERS'  FUND  OF  CHICAGO: 

The  Benefits    124 

Data    on    males    and    females    kept    separate 124 

Determination  of  rates  of  changes  on  which  cost  of  pensions  depends 125 

Active  service  tables   and   salary  scales 128 

Contributions    of    teachers 130 

Disability  pension  scale 131 

Number  and  present  pensions  of  pensioners 1" 

Classes  of  pensioners,  present  and  future  with   tables 132 

Hypothesis  I  and  Hypothesis  II 13 

Refunds *•* 

Present  and  future  costs 134 

Observations  regarding  the  deficiency 1«4 

THE  MUNICIPAL  EMPLOYEES'  FUND  OF  CHICAGO  : 

The  Benefits   147 

The  sources  of  revenue » 147 

The  plan  adopted  in  investigating  this  fund 147 

Actual   experience   table    and    table   of   rates 148 

Active  service  table   and   salary  scale 14 

Assumptions  with  regard  to  ages  of  retirement 150 

The  present  active  service  and  future  service 150 

Present  values  of  future  contributions  and  benefits  per  participant  on  given 

assumptions  as  to  ages  at  retirement 156 

The  Valuation  Balance  Sheet 156 

Observations  regarding  the  deficiencies 157 

The   percentage   pensions   will   be   of   salaries   when   the   system   carries   Its 

ultimate  normal  load 157 

The  active  service  classified  both  by  ages  and  length  of  service 157 

ILLINOIS  STATE  TEACHERS'  PENSION  AND  RETIREMENT  FUND: 

The  Benefits    161 

Data  used  in  valuation 161 

Assumptions  made  in  calculations 162 

Number  of  teachers  under  Fund 162 

Classification  of  data  with  regard   to   age 1*52 

Salary   and   length   of   service 162 

Mortality  rates 162 

Predictions  of  cost  at  intervals  of  five  years 1«2 

Assumptions  in  regard  to  groups  becoming  eligible 163 

Total  contributions   164 

Discussion  of  results 1C4 

CHAPTER  VI.— STATISTICS  RELATING  TO  THE  FUNDS  CREATED  UNDER 
THE  SEVERAL  PUBLIC  SERVICE  PENSION  ACTS  OF  THE  STATE  OF 
ILLINOIS. 

Chicago  policemen.  Tables  LXII  to  LXXVT  inclusive 169 

Chicago  firemen,   Tables   LXXVII   to   LXXXTI   inclusive 173 

Chicago  teachers,   Tables  LXXXIII  to  LXXXVIII   inclusive A 177 

Municipal  employees,   Chicago,  Tables  LXXXTX   to  XCIII  inclusive..* 182 

Illinois  State  teachers,  Tables  XCIV  to  XCVII  inclusive 186 

Chicago  park  policemen,  Tables  XCVIII  and  XCIX 189 

Chicago  public  school  employees,  Tables  C  to  CII  inclusive 191 

House  of  Correction  employees,  Tables  CHI  and  CIV 192 

Chicago  Public  Library  employees.  Tables  CV  and  CVI 193 

Peoria  Teachers,   Tables   CVII   and   CVIII 195 

Peoria  firemen.   Table   CIX    195 

Sprinerfleld  policemen.   Table   CX 196 

Rockford  firemen,    Table    CXI 196 

Rockford  policemen,    Table    CXII 196 


VI 

CONTENTS— Concluded. 

PAOB. 

Decatur    firemen,    Table    CXIII 197 

Aurora  firemen,   Table   CXIV 197 

Evanston  firemen,   Table   CXV 198 

Evanston  policemen,   Table  CXVI 198 

Moline  and  Champaign  policemen,   Table  CXVII 198 

Firemen  and  policemen,  cities  giving  statements  for  one  year,  Table  CXVIII...199 

CHAPTER  VII.— STATISTICS  SHOWING  EXTENT  OF  PRESENT  AND  POS- 
SIBLE FUTURE  PENSION  LEGISLATION  FOR  PUBLIC  SERVICE  EM- 
PLOYEES IN  CHICAGO. 

Number  of  public  service  employees  in  Illinois,  Table  CXIX 200 

List  of  State  departments  showing  number  of  employees  under  civil  service  in 

each,  Table  CXX 201 

Number  and  salaries  of  civil  service  employees  in  State  departments  classified 

by  years  of  service,  Table  CXXI 202 

List  of  State  institutions  showing  number  of  employees  under  civil  service  in 

each,  Table  CXXII 202 

Number  and  salaries  of  civil  service  employees  in  State  institutions,  classified 

by  years  of  service,  Table  CXXIII 203 

APPENDIX  A 205 

APPENDIX  B 241 


ACT    PROVIDING    FOR    INVESTIGATION    OF    THE 
PENSION    LAWS    OF   ILLINOIS. 


The  following  act  was  passed  by  the  Forty-ninth  General  Assem- 
bly of  the  State  of  Illinois,  in  its  second  special  session,  and  approved 
by  the  Governor  on  January  24,  1916 : 

AN  ACT  providing  for  the  creation  of  a  commission  to  "be  known  as  the 
Illinois  Pension  Laws  Commission,  and  defining  the  powers  and  du- 
ties of  such  Commission,  and  repealing  an  act  entitled,  "An  Act  pro- 
viding for  the  creation  of  a  commission  to  ~be  known  as  the  Illinois 
Pension  Laws  Commission,  and  defining  the  powers  and  duties  of  such 
Commission.1' 

SECTION  1.  Be  it  enacted  by  the  People  of  the  State  of  Illinois,  repre- 
sented in  the  General  Assembly:  That  there  is  hereby  created  a  commis- 
sion to  be  known  as  the  Illinois  Pension  Laws  Commission,  to  consist  of 
four  members,  one  of  whom  shall  be  a  representative  of  one  of  the  public 
pension  funds  of  this  State  heretofore  created  by  law,  the  other  three  of 
whom  shall  be  persons  not  interested  in  any  of  said  pension  funds  and  one 
of  whom  shall  be  a  person  versed  in  financial  affairs,  one  a  person  of  actu- 
arial experience,  and  one  a  person  of  legal  attainments  who  shall  be 
chairman  of  the  commission,  all  of  whom  shall  be  appointed  by  the 
Governor  to  hold  office  as  members  of  said  commission  uatil  the  conven- 
ing of  the  Fiftieth  General  Assembly,  at  which  time  said  commission  shall 
go  out  of  existence. 

SEC.  2.  It  shall  be  the  duty  of  said  commission  to  investigate  the  oper- 
ation of  all  pension  laws  heretofore  enacted  in  this  State;  to  gather  together 
all  available  information  as  to  the  present  and  probable  future  cost  of 
maintaining  the  funds  created  by  said  laws  and  to  collect  all  available  in- 
formation in  regard  to  the  operation  of  similar  laws  in  other  states  and 
countries.  The  commission  shall  report  the  results  of  ;its  investigations, 
together  with  any  recommendations  it  may  see  fit  to  make,  to  the  Gover- 
nor not  later  than  December  20,  1916,  for  transmission  to  the  Fiftieth 
General  Assembly. 

SEC.  3.  The  Commission  shall  have  power  to  call  upon  the  Insurance  De- 
partment and  other  departments  of  this  State  for  such  assistance  as  it  may 
require,  and  to  employ  one  or  more  actuaries,  a  clerk,  a  stenographer, 
and  such  other  assistance  as  it  may  require.  It  shall  also  have  power 
to  examine  the  books  of  all  present  public  pension  funds  now  existing  by 
law,  to  compel  the  production  of  all  books  and  papers  belonging  to  any  of 
said  funds,  to  administer  oaths  and  to  take  the  testimony  of  all  witnesses 
necessary  for  the  purposes  of  this  Act. 

SEC.  4.  The  expense  of  said  commission,  including  a  reasonable  per 
diem  to  the  members  thereof  not  to  exceed  ten  dollars  per  day  for  time 
actually  spent  in  such  investigation,  shall  be  paid  out  of  funds  to  be  ap- 
propriated for  that  purpose  upon  vouchers  drawn  upon  the  Auditor  of 
Public  Accounts,  properly  itemized  and  certified  to  by  the  chairman  of 
the  commission  and  approved  by  the  Governor. 

SEC.  5.  That  an  Act  entitled,  "An  Act  providing  for  the  creation  of  a 
commission  to  be  known  as  the  Illinois  Pension  Laws  Commission,  and 
defining  the  powers  and  duties  of  such  commission,"  approved  December 
3,  1915,  be  and  the  same  is  hereby  repealed. 

SEC.  6.  Whereas,  an  emergency  exists,  therefore  this  Act  shall  be  in  full 
force  and  effect  immediately  after  its  passage  and  approval. 


MEMBERS    OF   THE    ILLINOIS    PENSION    LAWS 
COMMISSION. 


On  January  24,  1916,  His  Excellency,  Governor  Edward  F.  Dunne, 
appointed  as  members  of  the  Illinois  Pension  Laws  Commission : 
JOHN  P.  DILLON,  of  the  Bureau  of  Streets,  Chicago; 
MARCUS  JACOBOWSKY,  Vice  President  of  the  Fort  Dearborn  National 

Bank,  Chicago; 

HENRY  L.  RIETZ,  Professor  of  Mathematical  Statistics  of  the  Uni- 
versity of  Illinois,  Urbana ; 
and,  as  chairman  of  the  commission: 

GEORGE  E.   HOOKER,  Civic   Secretary  of  the  City  Club  of   Chicago, 
Chicago. 

On  February  10,  1916,  the  commission  appointed  as  its  secre- 
tary and  actuary,  DONALD  F.  CAMPBELL,*  Professor  of  Mathematics, 
Armour  Institute  of  Technology,  Chicago. 


*  Can  be  addressed,  Room  640,  76  West  Monroe  Street,  Chicago,  Illinois. 


LETTER    OF   TRANSMITTAL. 


To  His  Excellency,  Edward  F.  Dunne,   Governor  of  the  State  of 
Illinois. 

The  Illinois  Pension  Laws  Commission,  authorized  by  an  Act  of 
the  Forty-ninth  General  Assembly,  Second  Special  Session,  approved 
January  24,  1916,  to  make  certain  investigations  and  recommendations 
concerning  the  pension  laws  of  Illinois,  submits  herewith  its  report, 
consisting  of  Part  I,  Investigations  with  Certain  Comparative  Studies, 
and  Part  II,  Underlying  Principles  and  Specific  Recommendations  for 
a  Revised  Pension  Plan. 

Respectfully  submitted, 

GEORGE  E.  HOOKER,  Chairman. 
JOHN  P.  DILLON. 
MARCUS  JACOBOWSKY. 
HENRY  L.  RIETZ. 
Chicago,  Illinois,  December  20,  1916. 


CHAPTER  I. 


INTRODUCTORY. 

Part  I  of  this  report  gives  briefly  the  history  of  pensions  for  public 
employees  in  other  countries,  reviews  in  detail  the  pension  laws  of 
Illinois,  recites  the  terms  of  the  leading  pension  laws  of  other  states 
in  this  country,  sets  forth  the  results  of  a  comprehensive  actuarial 
investigation  made  by  the  Commission  of  the  five  chief  public  pension 
funds  in  Illinois,  and  gives  important  statistics  concerning  the  other 
funds  and  the  extent  of  possible  pension  legislation  for  public  service 
employees  in  this  State. 

Part  II  outlines  briefly  the  scope  and  main  features  of  the  pension 
problem,  states  the  essential  principles  and  provisions  which,  in  the 
opinion  of  the  Commission,  should  constitute  a  normal  or  standard 
pension  plan,  and  makes  specific  recommendations  regarding  changes 
that  should  be  made  by  the  Fiftieth  General  Assembly  in  some  of  the 
existing  pension  acts,  pending  further  investigation  and  study  of  the 
pension  problem. 

PROCEDURE. 

The  commission  held  its  first  meeting  on  February  1,  1916,  at 
the  City  Club  of  Chicago,  on  which  occasion  it  elected  Commissioner 
Rietz  as  acting  secretary  and  proceeded  to  outline  the  work  to  be 
undertaken  by  it.  Between  this  date  and  February  5,  it  held  three 
meetings,  and  on  February  5,  an  open  meeting  to  which  representa- 
tives of  the  10  public  pension  funds  in  Chicago  were  invited.  About 
40  persons  attended,  all  these  funds  being  represented. 

At  the  sixth  meeting  held  on  February  10,  Donald  F.  Campbell, 
Professor  of  Mathematics  in  Armour  Institute  of  Technology,  and 
an  actuary  of  experience  in  insurance  and  pension  matters,  was 
appointed  by  the  Commission  as  its  secretary  and  actuary.  On  Feb- 
ruary 21,  it  engaged  offices  at  76  West  Monroe  Street,  Chicago. 

To  the  date  of  this  report,  the  commission  has  held  38  meetings, 
of  from  3  to  10  hours  each  in  duration.  The  Commission  expects 
to  hold  7  more  meetings  before  its  term  of  office  expires,  January  3, 
next.  In  collating  the  voluminous  information  required,  the  Com- 
mission has  had  in  its  employ  most  of  the  time  since  its  appointment 
from  5  to  9  persons,  besides  4  persons  employed  in  operating  the 
sorting  machines  for  classifying  data,  and  has  also  engaged  the  services, 
for  brief  periods  of  time,  of  97  people  in  different  parts  of  the  State 
in  collecting  information  concerning  the  State  Teachers'  Pension  and 
Retirement  Fund. 

DUTIES  IMPOSED  ON  COMMISSION. 
The  act  imposed  the  following  duties  on  the  commission : 
1.  To  investigate  the  operation  of  all  pension  laws  heretofore 
enacted  in  this  State. 


6 

2.  To  gather  together  all  available  information  as  to  the  present 
and  probable  future  cost  of  maintaining  the  funds  created  by  these 
laws. 

3.  To  collect  all  available  information  in  regard  to  the  operation 
of  similar  laws  in  other  states  and  countries. 

4.  To  report  the  results  of  its  investigations,  together  with  any 
recommendations  it  may  see  fit  to  make. 

1. 

PLAN    FOLLOWED    IN    INVESTIGATION    OF    OPERATION    OF    PENSION    LAWS 
ENACTED  IN  THIS  STATE. 

In  pursuance  of  the  duty  of  investigating  the  operation  of  all 
pension  laws  heretofore  enacted  in  this  State,  we  engaged  Frederick 
Green,  Professor  of  Law  in  the  University  of  Illinois,  to  prepare  a 
tabular  digest  of  pension  legislation  in  this  State,  and  to  write  a  short 
historical  sketch  of  such  legislation.  The  tabular  digest  will  be  found 
in  Appendix  A,  p.  206,  and  the  historical  sketch  forms  the  subject 
matter  of  Chapter  III,  p.  36. 

At  the  same  time  Commissioner  Dillon  and  Mr.  Campbell  were 
entrusted  with  the  duty  of  preparing  a  tabular  digest,  somewhat  more 
detailed  in  character,  of  all  pension  laws  in  force  in  Illinois  January 
1,  1916.  This  is  presented  in  Appendix  B,  page  242. 

Having  determined  the  scope  of  pension  legislation  in  this  State, 
we  next  directed  a  letter  to  the  mayor  of  each  city,  town  and  village 
in  the  State,  outside  of  Chicago,  requesting  information  concerning 
the  existence  of  pension  funds  in  the  corporation  under  his  adminis- 
tration. After  considerable  correspondence,  we  were  able  to  elicit 
replies  from  all  the  mayors  thus  addressed  except  those  of  Spring 
Valley  and  Mt.  Carmel.  Considering  the  population  of  these  two 
cities,  it  is  doubtful  if  any  pension  fund  exists  in  either.  Consequently, 
the  information  given  with  regard  to  the  number  of  funds  outside  of 
Chicago,  created  under  the  several  pension  acts  in  force  in  this  State 
(p.  168),  is  believed  to  be  exact. 

2. 

PLAN    FOLLOWED   IN    COLLECTION   OF   INFORMATION   AS   TO   THE   PRESENT 
AND  PROBABLE  FUTURE  COST  OF   MAINTAINING   FUNDS. 

The  determination  of  the  present  cost  of  maintaining  a  pension 
fund  involves  no  difficulty  when  the  books  are  properly  kept,  as  it 
consists  merely  in  making  a  transcript  of  the  books  as  of  the  date 
on  which  the  information  is  sought.  The  determination  of  the  future 
cost  of  maintaining  a  pension  fund,  however,  is  an  entirely  different 
and  much  more  intricate  problem.  For  this  determination,  various 
rates  at  which  certain  events  occur  at  the  different  ages  must  be 
derived,  as,  for  instance,  the  rates  at  which  persons  eligible  for  service 
pension  accept  pensions,  the  rates  of  disability  retirement  on  pension, 
the  rates  of  withdrawal  from  service  without  pension,  the  rates  of 
death  while  in  active  service,  and  the  rates  of  death  while  on  service 
pension  or  on  disability  pension.  To  determine  these  rates,  informa- 
tion must  be  collected  on  all  employees  under  any  particular  fund  over 
a  definite  period,  showing  the  number  in  service  at  the  beginning  of 
the  period  with  ages  as  of  dates  of  entrance,  the  number  and  ages  at 
dates  of  withdrawal  and  causes  of  withdrawal  of  those  not  in  service 


at  the  end  of  the  period,  and  the  ages  of  those  persisting  at  the  end 
of  the  period.  Also,  over  a  definite  period,  the  number  on  pension  at 
the  beginning  of  the  period,  the  number  who  retire  on  pension 
during  the  period  with  ages  as  of  the  dates  of  entrance,  the  number 
and  ages  at  dates  of  withdrawal  from  pension  of  those  who  are  not 
on  pension  at  the  end  of  the  period,  and  the  number  and  ages  at  the 
end  of  the  period  of  those  on  the  pension  roll  at  the  end  of  the  period. 
In  the  cases  where  pensions  are  granted  to  widows  and  children,  data 
differing  from  the  above  only  in  certain  obvious  details  must  be 
accumulated,  and,  in  addition,  tables  must  be  prepared  showing  the 
ratios  of  the  number  of  married  men  to  the  men  of  the  whole  group 
at  the  several  ages,  the  average  ages  of  the  wives  at  the  various  ages 
of  the  husbands,  and  the  ages  and  number  of  children  in  each  family. 

This  brief  outline  of  a  part  of  the  problem  of  determining  the 
future  cost  under  a  pension  plan  is  given  in  order  to  emphasize  the 
fact  that  predictions  of  future  costs  can  be  made  only  when  there  is 
a  body  of  employees  sufficient  to  justify  an  application  of  the  law  of 
averages.  Moreover,  if  future  predictions  are  to  be  based  entirely  on 
the  experience  of  the  fund  itself,  the  fund  must  be  in  existence  for  a 
sufficient  length  of  time  to  warrant  the  assumption  that  the  rates  of 
retirement  on  pension  in  the  past  will  be  those  at  which  such  retire- 
ments will  occur  in  the  future. 
Present  Costs. 

Having  determined  the  number  of  pension  funds  in  existence  in 
the  State,  we  next  endeavored  to  obtain  information  regarding  the 
present  cost  of  maintaining  these  funds.  At  the  same  time,  in  order 
to  show  the  progress  of  the  funds  from  year  to  year>  we  tried  to  obtain 
the  desired  information  by  years  for  a  period  of  10  years  if  the  fund 
had  been  in  operation  for  that  length  of  time,  or  from  date  of  incep- 
tion if  it  had  been  in  operation  for  a  shorter  period.  Having  in  mind 
the  extent  of  our  resources,  we  deemed  it  advisable  to  endeavor  to 
obtain  this  information  by  correspondence  with  those  in  charge  of  the 
books  of  the  several  funds  in  those  cases  where  the  funds  were 
located  outside  of  Chicago,  but  in  these  efforts  we  were  only  partially 
successful.  Although  a  number  furnished  us  with  the  information 
sought  as  it  appeared  on  their  books,  others  gave  us  only  the  figures 
as  of  January  1,  1916,  and  failed  to  reply  to  any  of  our  requests  for 
further  information;  while  in  two  instances,  figures  relating  to  the 
same  fund  furnished  from  two  different  sources  were  entirely  unlike. 
We  regret  the  fact  that  our  investigations  in  this  particular  are  not  as 
complete  as  we  should  like  them  to  be,  but  we  feel  that  they  are  as 
complete  as  we  could  make  them  and,  at  the  same  time,  give  larger 
funds  the  consideration  their  size  demanded. 

The  information  with  regard  to  the  funds  located  within  the 
limits  of  the  city  of  Chicago  was  collected  by  pur  own  employees  under 
the  supervision  of  our  actuary,  and  is  submitted  with  full  confidence 
in  its  exactness. 

For  results  of  present  yearly  costs,  and  of  yearly  costs  of  the 
past  ten  years,  see  Chapter  VI. 
Future  Costs. 

In  each  of  three  cases — namely,  the  Policemen's  Fund  of  Chicago, 
the  Firemen's  Fund  of  Chicago,  and  the  Public  School  Teachers'  Fund 


8 

of  Chicago — the  funds  were  of  sufficient  size  and  in  existence  for  a 
sufficient  length  of  time  to  warrant  our  basing  our  predictions  almost 
entirely  on  the  experiences  of  the  funds  themselves.  In  each  of  the 
two  others — -namely,  the  funds  for  municipal  Employees  of  Chicago, 
and  the  State  Teachers'  Pension  and  Retirement  Fund — the  body  of 
employees  was  of  sufficient  size  to  warrant 'our  assuming  that  the 
law  of  averages  would  apply,  but  in  neither  case  was  there  any  pen- 
sion experience  obtainable  from  the  fund  itself,  nor  were  any  tables 
available  from  the  pension  experience  of  like  funds  in  other  com- 
munities to  apply  to  it ;  while  in  the  case  of  the  fund  last  mentioned, 
there  were  no  means  of  finding  rates  of  retirement  from  service  with- 
out pension  and  no  such  tables  available.  Consequently,  in  these 
cases  we  were  driven  to  make  assumptions  that  certain  events  would 
happen  and  base  our  calculations  on  these  assumptions. 

For  an  explanation  of  the  methods  by  which  the  data  for  the  de- 
termination of  future  cost  was  collected,  and  for  the  actuarial  report 
on  such  costs,  see  Chapter  V. 

It  may  be  stated  here  that  the  actual  computations  involved  in 
Chapter  V  were  made  at  the  University  of  Illinois  under  the  imme- 
diate supervision  of  Commissioner  Rietz,  and  that  in  all  problems  in 
which  a  difference  of  opinion  between  actuaries  could  arise,  he  con- 
sulted with  Mr.  Campbell,  so  that  responsibility  for  the  correctness 
of  the  methods  employed  in  the  investigations  recorded  in  that  chapter 
rests  jointly  on  these  two  men. 

The  next  fund  to  these  in  point  of  number  of  employees  involved 
is  the  Public  School  Teachers'  Fund  of  Peoria.  In  this  case,  we  had 
in  mind  making  an  investigation  similar  to  that  made  in  the  case  of  the 
State  Teachers'  Pension  and  Retirement  Fund,  and  for  this  purpose 
addressed  a  circular  letter,  with  a  self-addressed,  stamped  envelope 
enclosed,  to  each  public  school  teacher  in  Peoria,  requesting  the 
required  information.  Although  this  was  followed  later  with  another 
letter,  repeating  the  request,  so  many  of  the  teachers  failed  to  reply 
that  we  would  not  be  justified  in  making  an  estimate  of  future  cost 
based  on  the  number  who  furnished  us  with  the  desired  data. 

In  all  the  other  funds  in  operation  in  this  State,  the  body  of 
employees  involved  was  in  each  instance  too  small  to  warrant  the 
assumption  that  the  law  of  averages  would  apply.  Consequently,  no 
determination  of  future  costs  was  attempted  in  any  such  case. 


PLAN     FOLLOWED     IN     COLLECTION     OF     INFORMATION     REGARDING     THE 
OPERATION  OF  PENSION  LAWS  IN  OTHER  STATES  AND  COUNTRIES. 

Another  duty  imposed  on  the  commission  was  that  of  collecting 
information  in  regard  to  the  operation  of  pension  laws  in  other  states 
and  countries. 

In  Other  States. 

The  duty  of  collecting  information  in  regard  to  the  operation  of 
pension  laws  in  other  states  was  entrusted  to  Mr.  Campbell.  This 


9 

investigation  could  consist  only  of  the  preparation  of  a  list  of  pension 
laws  in  force  in  other  states  and  a  statement  of  the  provisions  of  such 
laws.  Since  this  list  and  a  synopsis  of  the  provisions  of  each  law  in 
force  in  1913  had  been  prepared  by  the  Massachusetts  Commission  on 
Pensions  and  published  by  this  commission  in  1914,  and  since  copies 
of  their  report  are  available  to  all  who  choose  to  make  a  study  of  this 
phase  of  the  subject,  it  was  deemed  advisable  not  to  prepare  such  a 
synopsis,  which  would  to  a  very  great  extent  duplicate  their  work, 
but  to  have  their  synopsis  brought  down  to  date,  and,  in  a  survey  of 
the  provisions  of  the  laws  of  this  State,  draw  attention  to  the  corre- 
sponding provisions  in  the  laws  of  other  states.  This  discussion  forms 
the  subject  matter  of  Chapter  IV. 

In  Foreign  Countries. 

The  duty  of  collecting  information  in  regard  to  the  operation  of 
pension  laws  in  o'ther  countries  was  entrusted  to  Commissioner  Rietz. 
Upon  investigation,  we  found  that  not  all  such  data  could  be  col- 
lecte'd  in  the  time  at  our  disposal;  and  indeed  if  it  could  be,  much  of 
it  would  be  of  doubtful  value  because  of  the  insignificance  of  the 
funds  or  the  lack  of  evidence  to  show  that  the  plans  were  chosen 
wisely.  We  have,  therefore,  confined  this  part  of  our  investigation  to 
a  study  of  a  few  of  the.  more  widely  known  foreign  pension  systems, 
including  therein  those  that  presented  the  greatest  evidence  of  having 
been  built  upon  some  scientific  basis.  This  -discussion  is  the  subject 
matter  of  Chapter  II. 

4. 

PLAN    FOLLOWED    IN    DETERMINING    ON    RECOMMENDATIONS- 

The  course  pursued  by  the  Commission  in  dealing  with  the  actua- 
rial and  statistical  material  gathered,  with  a  view  to  recommendations, 
has  been  to  take  into  account,  the  pension  plans  now  in  operation 
under  the  existing  pension  laws  in  the  State ;  the  respects  in  which 
these  harmonize  with  or  differ  from  each  other ;  the  important  provi- 
sions in  each  affecting  the  sources  and  amounts  of  money  contributed 
to  the  fund  and  provisions  for  payments  therefrom;  the  features  which 
appeared  to  be  regarded  as  of  special  importance  by  the  beneficiaries 
under  these  various  plans ;  and  the  features  which,  on  the  whole,  ought 
to  characterize  what  might  be  called  a  type  plan  for  a  public  pension 
system.  The  comparison  of  the  divergent  features  of  the  existing 
plans  and  of  the  equally  divergent  opinions  of  beneficiaries  under  them 
as  to  essentials,  and  the  effort  to  weigh  the  value  of  these  features, 
have  involved  the  expenditure  of  a  great  deal  of  time  on  the  part  of 
the  Commission  in  discussion  of  principles,  policies  and  details.  The 
results  of  these  deliberations  comprise  Part  II  of  the  report  and  con- 
sist, first,  in  the  general  principles  which,  in  the  opinion  of  the 
Commission,  should  be  adhered  to  as  far  as  practicable  in  a  sound 
pension  system,  and,  second,  in  the  detailed  provisions  which  are 
deemed  by  the  Commission  to  be  adapted  to  carry  out  those  principles. 
The  conclusions  of  the  Commission  have  been  reached  after  confer- 
ence with  the  beneficiaries  of  the  more  important  pension  funds  and 
with  other  persons  interested  in  the  subject. 


10 
SUMMARY  OF  FACTS  FOUND. 

EXISTING    PENSION    LAWS    IN    ILLINOIS. 

We  find  that,  beginning  with  the  year  185#,  Illinois  has  enacted 
some  106  original  or  amending  acts  for  pensions.  As  a  result  of  this 
legislation,  on  January  1,  1916,  there  were  in  force,  or  likely  to  become 
in  force,  20  such  acts.  Of  these,  19  involve  the  expenditure  of  public 
money,  and  one  is  for  the  purpose  of  regulating  pensions  and  main- 
taining funds  by  assessment  in  the  case  of  a  private  concern. 

Among  them,  the  acts  regulating  "mothers'  pensions"  and  "pen- 
sions for  the  blind,"  though  popularly  referred  to  as  pension  acts,  are 
really  not  pension  acts  by  their  own  terms,  or,  in  fact,  in  the  sense 
that  under  them  payments  are  made  as  a  reward  for  service  rendered. 
In  one  case  payment  is  granted  merely  as  a  relief  of  need  with  the 
view  that  it  will  be  for  the  public  good,  and  in  the  other  as  a  part- 
compensation  for  a  physical  affliction. 

Of  the  remainder,  the  act  for  the  relief  of  army  and  navy  veterans 
merely  creates  machinery  for  dealing  with  such  individuals  different 
from  that  designed  for  other  indigent  persons ;  and  the  Military 
Code  and  the  Workmen's  Compensation  Act  are  designed  primarily 
for  the  regulation  of  liability  in  the  event  of  injury.  After  due  delib- 
eration, we  took  the  view  that,  for  the  reasons. stated,  the  five  acts  just 
mentioned  did  not  come  within  the  scope  of  the  work  outlined  for  us, 
and  consequently,  none  of  them  has  been  given  detailed  consideration. 

The  remaining  acts  are  listed  and  their  principal  provisions  given 
in  outline  in  Appendix  B. 

EXISTING    PENSION    FUNDS    IN    ILLINOIS. 

Among  the  acts  listed  in  Appendix  B,  the  fire  insurance  patrol- 
men's is  a  private  act.  The  act  of  1915,  designed  for  policemen  in  the 
employ  of  boards  of  park  commissioners,  has  not  yet  gone  into  effect, 
and  the  act  designed  for  officers  and  employees  of  counties  of  more 
than  150,000  inhabitants  has  been  declared  invalid.  Under  the  remain- 
ing twelve  acts,  there  are  in  operation  35  funds.  The  cities  in  which 
they  are  located  are  listed  below  in  groups  according  to  the  act  under 
which  the  funds  are  operating : 

Act  for  firemen  in  cities  of  more  than  5000  inhabitants: 

Chicago.  Rockford.  Elgin.  Oak  Park. 

Peoria.  Joliet.  Evanston.  Sterling. 

East  St.  Louis.  Decatur.  Moline.  Bloomington. 

Springfield.  Aurora. 

Act  for  policemen  in  cities  of  more  than  200,000  inhabitants: 
Chicago. 

Act  for  policemen  in  cities  of  50,000  .or  more  inhabitants: 
Peoria.  Springfield. 

Act  for  policemen  in  cities  of  not  less  than  9,000  nor  more  than  50,000 
inhabitants: 

Rockford.  Aurora.  Evanston.  Champaign. 

Joliet.  Bloomington.  Moline.  Quincy. 

Decatur. 

Act  of  1913,  relatin'g  to  policemen  in  employ  of  boards  of  park  commis- 
sioners: South  Park,  Chicago.    West  Park,  Chicago.     Lincoln  Park,  Chicago. 


11 

Act  for  public  school  teachers  in  cities  of  more  than  100,000  inhabitants: 
Chicago. 

Act  for  employees  of  boards  of  education  in  cities  of  more  than  100,000 
inhabitants:  Chicago. 

Act  for  employees  of  public  library  boards  in  cities  of  more  than  100,000 
inhabitants :  Chicago. 

Act  for  employees  of  houses  of  correction  in  cities  of  more  than  150,000 
inhabitants:  Chicago. 

Act  for  public  school  teachers  in  school  districts  of  not  less  than  10,000 
nor  more  than  100,000  inhabitants:  Peoria. 

Act  for  public  school  teachers  in  all  school  districts  of  the  State,  except 
Chicago  and  Peoria:  Springfield. 


DETAILS  OF  PRESENT  AND  PROBABLE  COST  OF  MAIN- 
TAINING THE  CHIEF  EXISTING  PENSION  FUNDS  IN 
THIS  STATE. 

(A)    THE  POLICE  FUND  OF  CHICAGO. 

/.  Number  of  employees  in  service,  January  I,  1916,  and  amount 
contributed  by  employees  to  pension  during  191$:  On  January  1,  1916, 
there  were  4,830  employees  contributing  to  the  fund.  The  contribu- 
tions received  by  deductions  from  salaries  amounted,  in  the  year  1915, 
to  $117,209.35. 

2.  Number  of  pensioners  on  January  I,  1916,  and  amount  dis- 
bursed in  pension  during  1915:  On  January  1,  1916,  there  were  1,257 
pensioners  on  the  rolls.  Of  these,  601  were  men,  656  widows,  and  22 
families.  The  amount  disbursed  in  pension  during  the  year  1915,  was 
$770,365.42. 

5.  Would  require  reserve  for  employees  and  pensioners  on  Jan- 
uary i,  1916,  with  their  dependents,  of  over  $30,600,000:  If  no  addi- 
tions were  made  to  the  force — vacancies  caused  by  retirements  on 
pension,  deaths,  resignations  and  dismissals  not  being  filled — a  sum 
amounting  to  $30,602,879  on  hand  January  1,  1916,  and  invested  to 
net  4  per  cent  compound  interest,  together  with  the  amount  on  hand 
at  that  date  ($120,847),  and,  in  addition,  the  contributions  of  2  per 
cent  deducted  from  salaries  of  employees,  would  be  sufficient  to  pay 
pensions  provided  for  by  this  act  as  they  mature  each  year. 

4.  Future  payments  to  pensioners  and  employees  of  January  I, 
1916,  with  their  dependents,  over  $73,000,000:  The  amounts  payable 
in  the  future  to  employees  and  pensioners  on  the  rolls,  January  1, 
1916,  with  their  dependents — no  additions  being  made  to  the  force — 
will  total  $73,091,631.  These  payments  will  be  distributed  as  follows: 

To  pensioners  on  the  roll,  January  1,  1916 $12,035,741 

To  pensioners  from  among  those  in  active  service,  January 
1,  1916,  and  their  dependents  and  the  dependents  of  those 
on  pension  on  that  date 61,055,890 


Total    $73,091,631 

—2  PL 


12 

Amount  contributed  by  employees  and  cash  on  hand : 

Amount  contributed  by  deduction  of   2  per  cent  of 

salaries    $  1,851 ,066 

Cash  on  hand,  January  1,  1916 120,847 


Total    $  1,971,913 

Balance  to  be  provided  from  other  sources 71,119,718 


Total $73,091,631 

5.  Amounts  and  percentages  of  pension  payments  among  the  dif- 
ferent classes  of  pensioners:  Of  the  total  pension  payments  to  pen- 
sioners and  those  in  active  service,  January  1,  1916,  with  their 
dependents,  the  amounts  and  percentages  of  total  amount,  paid  to  the 
different  classes  of  pensioners,  will  be  as  in  the  following  table: 

Per  cent  of 

,  Class  of  pensioners.                          Amount.  $73,091,631. 

Service  pensioners $29,558,085  40.4 

Disability  pensioners   933,285  1.3 

Widows  of  Class  A 2,761,548  3.8 

Widows  of  Class  B 31,335,157  42.9 

Widows  of  Class  C 8,020,352  11.0 

Children   483,204  .6 


Totals   $73,091,631  100.0 

6.  Pension  payments  to  pensioners  and  employees  of  January  i, 
1916,  will  extend  for  a  period  of  77  years:    If  pensions  are  paid  only 
to  those  on  pension  and  in  active  service  January  1,  1916,  that  is,  if 
the  pension  system  should  be  discontinued  so  far  as  those  entering 
service  after  January  1,  1916,  are  concerned,  there  would  be  pension- 
ers on  the  rolls  for  a  period  of  77  years,  or  until  1993. 

7.  //  the  force   is   maintained   at   its  size   of  January    I,    1916, 
$150,000,000  will  be  required  in  77  years:    If  a  force  of  4,830  men  is 
to  be  maintained,  the  amounts  necessary  to  pay  pensions  under  the 
present  plan,  in  addition  to  the  amounts  that  will  be  contributed  by 
employees  through  deductions  of  2  per  cent  of  salaries,  during  the  77 
years  following  January  1,  1916,  will  be  as  follows : 

Payments  to  those  on  pension  roll  or  in  active  service, 

January  1,  1916,  and  their  dependents $73,091,631 

Payments  to  those  who  enter  the  service  after  January 
1,  1916,  and  their  dependents  when  they  become  pen- 
sioned    87,162,306 


Total    $160,253,937 

Deductions  of  2  per  cent  from  salaries  of  those: 

In  service,  January  1,  1916 $     1,852,071 

Entrants  after  January  1,  1916 8,204,863 

Total  $10,056,934 


Balance  to  be  provided  from  other  sources $150,197,003 


13 

8.  Annual  charge,  varying  from  $770,365  in  1915  to  $2,209,233 
when  the  system  is  carrying  its  ultimate  normal  load:    After  a  system 
becomes  such  that  the  number  of  employees  remains  constant,  new 
entrants  coming  in  only  to  fill  vacancies  caused  by  withdrawals  and 
deaths,  then  there  will  come  a  time  when  pension  payments  will  be 
the  same  from  year  to  year.     When  this  time  comes,  the  system  is 
said  to  be  carrying  its  ultimate  normal  load.     In  this  instance,  if  the 
body  of  employees  remains  constant  at  its  size  on  January  1,  1916,  of 
4,830  men,  the  system  will  carry  its  ultimate  normal  load  77  years 
from  January  1,  1916,  or  in  the  year  1993.     It  will,  however,  carry 
more  than  its  normal  load,  namely  $2,227,763,  in  29  years  or  in  1945. 

9.  When  the  system  is  carrying  its  ultimate  normal  load,  pension 
requirements  will  be  34.3  per  cent  of  the  pay  roll:     If  the  body  of 
employees  remains  stationary  at  4,830  men,  pension  payments,  when 
the  system  is  carrying  its  ultimate  normal  load,  will  be  $912,375  to 
men  and  $1,296,858  to  women  and  children.     This  makes  a  total  of 
$2,209,233,  which  on  the  basis  of  present  salaries  will  be  34.3  per  cent 
of.  the  pay  roll.     At  that  time  the  percentages  of  payments  to  men, 
widows  and  children  compared  with  total  pension  payments  will  be, 
to  men,  41.3  per  cent,  and  to  widows  and  children,  58.7  per  cent. 

(B)  THE  FIREMEN'S  FUND  OF  CHICAGO. 

1.  Number  of  employees  in  service  January  i,  1916,  and  amount 
received  for  pension  purposes  during  1915:    On  January  1,  1916,  there 
were  1,973  employees  contributing  to  the  fund.     The  receipts  from 
all  sources  amounted,  in  the  year  1915,  to  $226,196. 

2.  Number  of  pensioners  on  January  i,  1916,  and  amount  dis- 
bursed in  pension  during  1915:    On  January  1,  1916,  there  were  702 
pensioners  on  the  rolls.     Of  these,  247  were  men,  291  widows,  and 
164  children.    The  amount  disbursed  in  pension  during  the  year  1915 
was  $339,911. 

3.  Would  require  reserve  for  employees  and  pensioners  of  Janu- 
ary i,  1916,  with  their  dependents,  of  over  $14,000,000:     If  no  addi- 
tions were  made  to  the  force — vacancies  caused  by  retirements  on 
pension,  deaths,  resignations  and  dismissals  not  being  filled — a  sum 
amounting  to  $13,772,011  on  hand  January  1,  1916,  and  invested  to 
net  4  per  cent  compound  interest,  together  with  the  amount  on  hand 
at  that  date  ($3,101),  and  in  addition,  the  contributions  of  1  per  cent 
deducted  from  salaries  of  employees,  would  be  sufficient  to  pay  pen- 
sions provided  for  by  this  act  as  they  mature  each  year. 

4.  Future  payments  to  pensioners  and  employees  of  January  i, 
1916,  with  their  dependents,  over  $33,400,000:    The  amounts  payable 
in  the  future  to  employees  and  pensioners  on  the  rolls,  January  1,  1916, 
with  their  dependents — no  additions  being  made  to  the  department- 
will  total  $33,416,548.    These  payments  will  be  distributed  as  follows : 

To  pensioners  on  the  roll,  January  1,  1916 $  5,427,268 

To  pensioners  from  among  those  in  active  service,  January 

1,  1916,  and  their  dependents  and  the  dependents  of  those 

on  pension  on  that  date 27,989,280 


Total    $33,416,548 


14 

Amount  contributed  by  employees  and  cash  on  hand : 

Amount  contributed  by  deduction  of   1   per  cent  of 

salaries    $      494,909 

Cash  on  hand  January  1,  1916 3,101 


Total    $      498,010 

Balance  to  be  provided  from  other  sources 32,918,538 


Total    $33,416,548 

5.  Amounts  and  percentages  of  pension  payments  among  the  dif- 
ferent classes  of  pensioners:  Of  the  total  pension  payments  to 
pensioners  and  those  in  active  service  January  1,  1916,  with  their 
dependents,  the  amounts  and  percentages  of  total  amount,  paid  to  the 
different  classes  of  pensioners,  will  be  as  in  the  following  table : 

Per  cent  of 

Class  of  pensioners.                          Amount.  $33,416,548. 

Service  pensioners $14,825,010  44.3 

Disability   pensioners    2,055,511  6.2 

Widows'of  Class  A 2,976,168  8.9 

Widows  of  Class  B 9,679,437  29.0 

Widows  of  Class  C 3,217,801  9.6 

Children   662,621  2.0 


$33,416,548  100.0 

6.  Pension  payments  to  pensioners  and  employees  of  January  I, 
1916,  will  extend  for  a  period  of  81  years:  If  pensions  are  paid  only 
to  those  on  pension  and  in  active  service,  January  1,  1916,  that  is,  if 
the  pension  system  should  be  discontinued  so  far  as  those  entering 
service  after  January  1,  1916,  are  concerned,  there  would  be  pension- 
ers on  the  rolls  for  a  period  of  81  years,  or  until  1997. 


7.  //  the  force  is  maintained  at  its  size  as  of  January  i, 
$79>7°9>427  WM  be  required  in  81  years:  If  a  force  of  1,973  men  is 
to  be  maintained,  the  amounts  necessary  to  pay  pensions  under  the 
present  plan,  in  addition  to  the  amounts  that  will  be  contributed  by 
employees  through  deductions  of  1  per  cent  of  salaries,  during  the  81 
years  following  January  1,  1916,  will  be  as  follows: 

Payments  to  those  on  pension  roll  or  in  active  service, 

January  1,  1916,  and  their  dependents  ................  $33,416,548 

Payments  to  those  who  enter  the  service  after  January  1, 

1916,  and  their  dependents  when  they  become  pensioned.  46,293,884 


Total    $79,710,432 

Deductions  of  1  per  cent  from  salaries  of : 

Those  in  service  January  1,  1916 $    494,909 

Entrants  after  January  'l,  1916 1,947,932 

Total  .   $2,442,841 


Balance    ,  $77,267,591 


15 

8.  Annual  charge  varying  from  $339,911  in  1915  to  $1,071,875 
.  when  the  system  is  carrying  its  ultimate  normal  load:  After  a  system 
becomes  such  that  the  number  of  employees  remains  constant,  new 
entrants  coming  in  only  to  fill  vacancies  caused  by  withdrawals  and 
deaths,  then  there  will  come  a  time  when  pension  payments  will  be  the 
same  from  year  to  year.  When  this  time  comes,  the  system  is  said  to 
be  carrying  its  ultimate  normal  load.  In  this  instance,  if  the  body  of 
employees  remains  constant  at  its  size  on  January  1,  1916,  of  1,973 
men,  the  system  will  carry  its  ultimate  normal  load  81  years  from 
January  1,  1916,  or  in  the  year  1997.  It  will,  however,  carry  prac- 
tically its  normal  load,  namely  $1,071,795,  in  30  years  or  in  1946. 

o.  When  the  system  is  carrying  its  ultimate  normal  load,  pension 
requirements  will  be  36.6  per  cent  of  the  pay  roll:  If  the  body  of  em- 
ployees remains  stationary  at  1,973  men,  pension  payments,  when  the 
system  is  carrying  its  ultimate  normal  load,  will  be  $512,960  to  men, 
$531,862  to  widows  and  $27,052  to  children.  This  makes  a  total  of 
$1,071,874,  which  on  the  basis  of  present  salaries  will  be  36.6  per  cent 
of  the  pay  roll.  At  that  time  the  percentages  of  payments  to  men,  to 
widows  and  to  children  compared  with  total  pension  payments  will  be, 
to  men,  47.9  per  cent;  to  widows,  49.6  per  cent;  and  to  children,  2.5 
per  cent. 

(c)  THE  TEACHERS'  FUND  OF  CHICAGO. 

/.  Number  of  employees  in  service  January  i,  1916,  and  amount 
contributed  by  employees  to  pension  during  1915:  On  January  1,  1916, 
there  were  7,754  teachers  contributing  to  the  fund,  of  whom  7,010 
were  females  and  744,  males.  The  contributions  received  by  deduc- 
tions from  salaries  amounted,  in  the  year  1915,  to  $129,875.55. 

2.  Number  of  pensioners  on  January  I,  1916,  and  amount  dis- 
bursed in  pension  during  1915:  On  January  1,  1916,  there  were  544 
pensioners,  of  whom  521  were  females  and  23,  males.  The  amount 
disbursed  in  pension  during  the  year  1915  was  $191,716.91. 

j.  Would  require  reserve  for  employees  and  pensioners  of  Janu- 
ary /,  1916,  of  over  $5,600,000:  If  no  additions  were  made  to  the 
force — vacancies  caused  by  retirements  on  pension,  deaths,  resigna- 
tions and  dismissals  not  being  filled — a  sum  amounting  to  $5,601,199 
on  hand  January  1,  1916,  and  invested  to  net  4  per  cent  compound 
interest,  together  with  the  amount  on  hand  on  that  date  ($1,030,572), 
and,  in  addition,  the  contributions  on  the  present  basis  from  salaries 
of  teachers  and  contributions  of  equal  amounts  from  the  city  would 
be  sufficient  to  pay  pensions  provided  for  by  this  act  as  they  mature 
each  year. 

4.  Future  payments  to  pensioners  and  employees  of  January  i, 
1916,  over  $27,900,000:  The  amounts  payable  in  the  future  to  em- 
ployees and  pensioners  on  the  rolls,  January  1,  1916 — no  additions 
being  made  to  the  staff— will  total  $27,925,940.  These  payments  will 
be  distributed  as  follows: 


16 


To  pensioners  on  the  roll,  January  1,  1916. 4 $  3,233,946 

To  pensioners  from  among  those  in  active  service,  January 

1,  1916 24,683,994 

Refunds 8,000 


Total $27,925,940 

Amount  contributed  by  teachers  and  city,  and  cash  on  hand : 

Amount  contributed  by  teachers $3,377,370 

Amount  contributed  by  city  on  present  basis 3,377,370 

Cash  on  hand,  January  1,  1916 1,030,572 


Total $7,785,312 

5.  Amounts  and  percentages  of  pension  payments  among  the  dif- 
ferent classes  of  pensioners:  Of  the  total  pension  payments  to  pen- 
sioners and  those  i-n  active  service,  January  1,  1916,  the  amounts  and 
percentages  to  total  amount,  paid  to  the  different  classes  of  pensioners, 
will  be  as  in  the  following  table : 

Per  cent  of 
Class  of  pensioners.  Amount.        $27,917,940. 

Service   pensioners $26,626,661  95.4 

Disability  pensioners 1,291,279  4.6 


Totals $27,917,940  100.0 

6.  Pension  payments  to  pensioners  and  employees  of  January  i, 
1916,  will  extend  for  a  period  of  81  years:     If  pensions  are  paid  only 
to  those  on  pension  and  in  service,  January  1,  1916,  that  is,  if  the  pen- 
sion system  should  be  discontinued  so  far  as  those  entering  service 
after  January  1,  1916,  are  concerned,  there  would  be  pensioners  on 
the  rolls  for  a  period  of  81  years,  or  until  1997. 

7.  //  the  staff  is  maintained  at  its  size  as  of  January  i,  1916, 
$85,184,31?  will  be  required  in  81  years:    If  a  staff  of  7,754  teachers 
is  to  be  maintained,  the  amounts  necessary  to  pay  pensions  under  the 
present  plan,  in  addition  to  the  amounts  that  will  be  contributed  by 
teachers  through  deductions  from  salaries  on  the  present  basis,  and 
equal  amounts  from  the  city,  during  the  years  following  January  1, 
1916,  will  be  as  follows: 

Payments  to  those  on  pension  roll  or  in  active  service, 

January  1,  1916 $27,917,940 

Payments  to  those  who  enter  the  service  after  January 

1,  1916 , 57,257,241 


Total    $85,175,181 

Deductions  from  salaries : 

Those  in  active  service,  January  1,  1916 $  3,377,370 

Entrants  after  January  "l,  1916 13,079,042 


Total    $16,456,412 

Balance    $68,718,769 

8.  Annual  charge  varying  from  $191,717  in  1915  to  $758,712  when 
the  system  is  carrying  its  ultimate  normal  load:     After  the  system 


17 

becomes  such  that  the  number  of  employees  remains  constant,  new 
entrants  coming  in  only  to  fill  vacancies  caused  by  withdrawals  and 
deaths,  then  there  will  come  a  time  when  pension  payments  will  be 
the  same  from  year  to  year.  When  this  time  comes,  the  system  is  said 
to  be  carrying  its  ultimate  normal  load.  In  this  instance,  if  the  staff 
remains  constant  at  its  size  on  January  1,  1916,  of  7,754  teachers,  the 
system  will  carry  its  ultimate  normal  load  81  years  from  January  1, 
1916,  or  in  the  year  1997.  It  will,  however,  carry  more  than  its  ulti- 
mate normal  load,  namely  $768,074,  in  24  years  or  in  1940. 

o.  When  the  system  is  carrying  its  ultimate  normal  load,  pension 
requirements  will  be  7.06  per  cent  of  the  pay  roll:  If  the  body  of 
teachers  remains  stationary  at  the  number  of  7,754,  pension  payments, 
when  the  system  is  carrying  its  ultimate  normal  load,  will  be  $758,711. 
On  the  basis  of  present  salaries,  this  will  be  7.06  per  cent  of  the 
pay  roll. 

(D)    THE   MUNICIPAL  EMPLOYEES'   FUND  OF   CHICAGO. 

7.  Number  of  employees  in  service  January  I,  1916,  and  amount 
contributed  by  employees  to  pension  during  1915:  On  January  1,  1916, 
there  were  5,604  employees  contributing  to  the  fund.  The  contribu- 
tions received  by  deductions  from  salaries  amounted,  in  the  year 

1915,  to  $134,127,22. 

2.  No  pensioners  during  1915:  The  act  under  which  this  fund  is 
operated  prescribed  an  accumulation  period  of  5  years  from  July  1, 
1911,  before  pensions  would  be  paid.  This  period  did  not  expire 
until  July  1,  1916,  and  consequently,  there  were  no  disbursements  in 
pension  during  1915. 

5.  Would  require  reserve  for  employees  in  service,  January  I, 

1916,  of  perhaps  in  the  neighborhood  of  $7,000,000:    Of  the  assump- 
tions made  as  to  the  ages  at  which  employees  would  accept  pension 
from  this  fund,  the  one  assuming  age  60  as  the  age  of  retirement  on 
pension  would  probably  most  nearly  reflect  actual  future  conditions. 
On  this  assumption,  if  no  additions  were  made  to  the  service — vacan- 
cies caused  by  retirements  on  pension,  deaths,  resignations  and  dis- 
missals not  being  filled — a   sum   amounting  to   $7,005,355,   on  hand 
January  1,  1916,  and  invested  to  net  4  per  cent  compound  interest, 
together  with  the  amount  on  hand  on  that  date   ($525,681.86),  and, 
in  addition,  the  contributions  of  $24  per  year  deducted  from  salaries 
of  employees,  would  be  sufficient  to  pay  pensions  provided  for  by  this 
act  as  they  mature  each  year. 

(E)    THE   ILLINOIS   STATE  TEACHERS'   PENSION   AND  RETIREMENT   FUND. 

/.  Number  of  public  school  teachers  in  service  January  I,  1916, 
and  receipts  of  the  fund  during  the  year  1915:  As  nearly  as  we  can 
estimate,  there  were  in  round  numbers  26,000  public  school 
teachers  in  the  State,  outside  of  the  cities  of  Chicago  and  Peoria,  on 
January  1,  1916.  The  amount  received  by  the  fund  during  the  year 
1915  was  $50,144.97. 


18 

2.  No  pensioners  during  1915:  No  pension  payments  were  made 
in  this  fund  before  January  1,  1916,  excepting  small  amounts  in  the 
cases  of  funds  absorbed  by  this  fund. 

j.  Number  of  pensioners  September  30,  1916,  and  amount  dis- 
bursed in  pension  from  January  i,  1916,  to  September  30,  1916:  On 
September  30,  there  were  339  pensioners  on  the  rolls.  The  amount 
disbursed  in  pension  during  the  year  1916  up  to  September  30  was 
$26,294.59. 

4.  Annual  charge  when  the  system  is  carrying  its  ultimate  normal 
load:  While  there  is  considerable  variation  in  the  results  according 
to  the  assumptions  made,  it  seems  fairly  safe  to  say  that  the  ultimate 
pension  payments  under  the  present  system  will  amount  to  between 
7  and  12  per  cent  of  the  annual  salary  payments. 

EXTENT  OF  PRESENT  AND  POSSIBLE  FUTURE  PENSION 

LEGISLATION  FOR  PUBLIC  SERVICE  EMPLOYEES 

IN  ILLINOIS. 

We  find  that  on  January  1,  1916,  there  were  in  Illinois  77,791 
public  service  employees.  Of  these,  30,550  were  under  civil  service, 
and  47,241,  including  34,191  teachers,  not  under  civil  service.  Of  the 
77,791  public  service  employees,  55,350  were  under  pension  legislation 
and  22,441  were  not  under  pension  legislation.  Of  the  22,441  not  under 
pension  legislation,  9,906  were  under  civil  service.  Those  consist  of : 
State  employees,  5,509 ;  employees  other  than  policemen  in  the  park 
systems  in  Chicago,  2,790 ;  county  employees,  1,248 ;  and  employees  in 
Springfield  and  Evanston  other  than  policemen  and  firemen,  359. 

For  further  particulars,  see  Chapter  VII. 


19 


CHAPTER  II. 


THE    OPERATION    OF    PENSION    LAWS    IN    FOREIGN 

COUNTRIES. 

PURPOSE    OF   THE    CHAPTER. 

The  Illinois  Pension  Laws  Commission  is  charged  not  only  with 
the  duty  of  investigating  the  operation  of  pension  laws  in  Illinois,  but 
also  with  that  of  collecting  available  information  on  the  operation  of 
similar  laws  in  other  states  and  countries.  It  is  the  purpose  of  the 
present  chapter  to  give  a  brief  survey  of  the  pension  experiences  of 
certain  foreign  countries,  with  special  reference  to  such  matters  as 
may  throw  light  on  the  pension  situation  in  Illinois. 

COMPARISON   OF   PENSION   CONDITIONS   IN   THE  UNITED   STATES   AND 

EUROPE. 

In  many  foreign  countries,  some  more  or  less  scientific  form  of 
pension  or  retiring  allowance  is  provided  for  public  employees  in  all 
cases  where  the  tenure  of  office  is  practically  permanent.  We  note  a 
decided  contrast  between  this  condition  and  that  which  exists  in  the 
United  States.  Our  Federal  Government  makes  no  provision  for  pen- 
sioning its  civil  service  employees ;  and  our  states  provide  pensions,  in 
the  main,  only  to  certain  select  groups,  such  as  firemen,  policemen, 
teachers,  municipal  employees  and  judges,  and  have  not,  in  general, 
any  well-considered  policy.  The  contrast  is  the  more  striking  when 
we  take  into  account  the  fact  that  the  United  States  pays  enormous 
amounts  in  war  pensions  in  comparison  with  those  paid  in  any  foreign 
country.  The  explanation  of  this  attitude  of  the  Federal  and  State 
Governments  toward  the  pensioning  of  public  employees  is  to  be  found, 
perhaps,  in  the  facts  that  our  economic  interests  have  been  largely 
agricultural,  and  that  in  communities  of  such  a  character  the  doctrine 
of  individualism  receives  more  general  support  than  in  communities 
where  other  interests  predominate. 

In  Europe  the  problem  of  pensions  for  government  employees  has 
received  attention  for  more  than  one  hundred  years.  During  this  time, 
many  unsuccessful  experiments  have  been  attempted,  which  we  in  this 
country  are  inclined  perhaps  unwittingly  to  repeat.  Especially  during 
the  later  years  of  this  period  the  problem  of  pensions  for  both  gov- 
ernment and  industrial  employees  has  demanded  the  thought  of  the 
greatest  statesmen  of  Europe,  as  for  instance,  Bismarck,  Gladstone, 
Lord  Morley,  Chamberlain,  Asquith  and  Lloyd-George.  In  the  United 
States,  only  within  very  recent  years  has  an  attempt  been  made  to  study 


20 

the  pension  problem;  and  even  yet,  with  few  exceptions,  no  legisla- 
tion has  been  enacted  calculated  to  place  any  fund  on  a  sound  financial 
basis. 

ORIGIN   AND   GROWTH    OF   PENSION    SYSTEMS. 

It  is  obvious  that  a  study  of  the  history  of  former  pension  experi- 
ences, such  as  those  referred  to  above,  is  an  important  preliminary 
step  in  the  consideration  of  future  pension  plans. 

Personal  pensions  are  of  ancient  origin,  these  having  been  given 
by  sovereigns  for  distinguished  service  to  the  state  under  the  Roman 
Empire.  On  the  other  hand,  pension  systems  are  of  comparatively 
recent  origin.  They  are  not,  however,  so  recent  but  that  there  exists  a 
considerable  body  of  valuable  data  which  throws  some  light  on  our 
pension  problems  in  America.  England  has  had  more  than  a  century 
(beginning  in  1810)  of  illuminating  experience  with  civil  service  pen- 
sion systems,  which  are  in  many  features  similar  to  pension  systems 
created  under  the  laws  of  Illinois.  France  had  a  pension  system  for 
municipal  employees  in  Paris  at  an  even  earlier  date.  Some  pension 
plans  in  Austro-Hungary  date  back  to  1771. 

The  idea  of  creating  pension  systems  for  government  employees 
probably  originated  indirectly  with  the  governments  themselves.  About 
the  beginning  of  the  last  century,  various  countries  began  to  adopt 
definite  pension  plans  for  soldiers.  It  was  a  natural  step  from  such 
pensions  to  similar  provisions  for  policemen,  firemen  and  other  gov- 
ernment employees.  This  class  of  pension  is  in  the  nature  of  a  reward 
for  past  services,  and  is  not  based  necessarily  on  the  need  of  the 
individual. 

Somewhat  later,  as  the  result  of  the  changed  social  and  industrial 
conditions,  caused  largely  by  the  use  of  machinery,  industrial  pension 
systems  were  inaugurated  by  certain  governments.  These  pensions 
are  in  the  nature  of  relief  to  a  class  described  as  the  not  undeserving 
poor,  and  are  intended  in  large  measure  as  a  defense  for  working  men 
against  need  in  old  age  and  invalidity. 

METHOD   OF    PROCEDURE. 

Although  the  two  classes  of  systems  afford  a  fundamental  dis- 
tinction in  regard  to  the  basis  upon  which  pensions  are  paid,  still  the 
development  of  each  has  had  an  influence  on  the  other.  A  discussion 
of  pension  systems  for  government  employees  would  therefore  be 
incomplete  without  a  more  or  less  detailed  reference  to  industrial 
systems. 

In  order  to  present  some  of  the  facts  in  concrete  form  we  shall 
take  up  separately  some  foreign  countries  whose  experiences  seem 
especially  valuable,  and  give  brief  descriptions  of  these  experiences 
with  such  comments  and  interpretations  as  seem  to  have  some  bearing 
on  the  status  of  pension  funds  in  Illinois.  Especial  attention  and  a 
relatively  large  amount  of  space  are  given  to  Great  Britain  and 
Germany,  because  it  appears  that  we  in  America  are  tending  to  retrace 
unconsciously  the  main  features  of  the  experiences  of  these  countries 
without  profiting  by  their  failures. 


21 

GREAT  BRITAIN. 
CIVIL  SERVICE  PENSIONS.1 

EARLY   EXPERIMENTS. 

As  stated  above,  the  British  Government  has  had  more  than  a 
century  of  experience  in  attempting,  by  the  payment  of  pensions,  to 
solve  the  problem  of  retirement  from  the  civil  service.  In  1810,  under 
a  general  act,  the  government  began  the  payment,  out  of  the  revenue 
of  the  country,  of  retiring  allowances  to  civil  service  employees. 

Because  the  expenditure  was  increasing  rapidly,  Parliament 
provided  in  1822  that  deductions  should  be  made  from  salaries  of  civil 
service- employees  receiving  more  than  one  hundred  pounds  ($486.66) 
per  annum.  The  law  required  that  half  the  superannuation  allowances 
granted  after  that  date  should  be  paid  out  of  the  funds  thus  created. 
Two  years  later  the  act  was  repealed,  and  the  sums  contributed  up  to 
that  time  were  returned. 

From  1824  to  1829  pensions  were  granted  by  the  State  on  a  liberal 
basis  without  deductions  from  the  salaries  of  the  employees. 

LAWS  IN  FORCE  FROM  1829  TO  1857. 

From  1829  to  1857,  a  contributory  system  was  in  force  for  all 
who  entered  the  civil  service  subsequent  to  August  4,  1829.  The 
deductions  from  salary  were  2^  per  cent  from  salaries  not  exceeding 
one  hundred  pounds  ($486.66)  per  annum,  and  5  per  cent  from  salaries 
exceeding  that  amount.  This  act  contained  no  provision  that  the 
amounts  thus  collected  should  be  funded  and  accumulated  at  interest. 
The  contributions  were  to  be  turned  into  the  general  exchequer,  and 
no  provision  was  made  for  determining  whether  or  not  they  were 
adequate  to  supply  the  pensions  promised. 

A  general  feeling  of  dissatisfaction  with  the  contributory  system 
developed  among  the  employees.  They  believed,  in  the  first  place,  that 
the  contributions  were  more  than  adequate  to  provide  the  pensions 
promised.  More  particularly,  however,  their  antagonism  to  the  system 
was  aroused  by  the  lack  of  a  provision  for  the  refund  of  contributions 
in  case  of  withdrawal  from  the  service  before  the  conditions  for  receiv- 
ing a  pension  were  fulfilled.  In  this  latter  connection,  the  distinguished 
Sir  John  Herschel,  after  leaving  the  public  service,  expressed  himself 
in  regard  to  the  injustice  of  offering  no  refunds  in  the  following 
manner:  "The  only  mode  consistent  with  justice  in  dealing  with  such 
portion  of  a  man's  salary  as  may  be  withheld  from  him  is  to  regard 
it  as  held  in  trust,  and  managed  for  his  absolute  benefit,  to  be  either 
handed  over  to  him  with  accumulations  at  the  termination  of  his  service 
or  paid  over  to  his  estate  in  the  case  of  death." 

The  discontent  with  the  conditions  became  so  intense  that  in  1846 
the  employees  formed  an  association  for  the  purpose  of  bringing  their 
grievances  before  Parliament.  This  association  worked  on  various 
plans  for  ten  years,  and  presented  its  claims  before  a  select  committee 

1  For  a  source  of  more  complete  information  on  the  experience  of  Great 
Britain,  see  Report  of  Herbert  D.  Brown,  U.  S.  Sen.  Doc.  No.  290,  61st  Congress, 
second  session. 


22 

of  the  House  of  Commons  in  1856.  Two  actuaries  were  appointed  to 
investigate  the  question  as  to  whether  the  deductions  from  salary  were 
more  than  adequate  to  pay  the  pensions.  Contrary  to  expectations,  the 
actuaries  found  that  the  contributions  were  inadequate  and  that  if  the 
system  had  depended  upon  contributions  only  it  would  have  been  hope- 
lessly insolvent.  The  provision  requiring  deductions  from  salaries  was 
repealed  in  1857,  and  an  act  was  passed  in  1859  which  established  a 
system  of  noncontributory  pensions. 

LAW  IN  FORCE  FROM  1859  TO  1909. 

In  this  act  of  1859  the  amount  of  the  pension  was  fixed  at  one- 
sixtieth  of  the  salary  for  each  year  of  service,  with  a  maximum  of 
two-thirds  of  the  average  salary.  Retirement  on  pensions  was  per- 
mitted at  age  60,  or  in  case  of  disability  after  ten  years  of  service ; 
but  no  power  was  given  the  state  to  compel  retirement  at  any  age.  In 
its  general  and  most  important  features  the  scheme  inaugurated  in 
1859  remained  unaltered  until  1909.  During  this  interval,  however, 
some  changes  in  detail  were  made ;  thus,  under  an  act  of  1887,  pensions 
were  given  to  widows  and  children  of  public  servants  killed  in  the 
performance  of  duty. 

This  system  of  noncontributory  pensions  created  by  the  act  of 
1859  was  not  satisfactory  to  the  employees.  After  the  system  was  in 
force  for  some  time,  the  view  .came  to  be. held  that  the  pension  was 
taken  into  account  in  fixing  salaries;  in  other  words,  that  the  em- 
ployees, because  of  their  pension  prospects,  were  being  paid  less  than 
they  would  otherwise  receive.  A  committee  consisting  of  70,000  of 
the  total  100,000  employees,  which  took  the  name  "Deferred  Pay 
Committee,"  pressed  the  claims  of  employees  so  vigorously  that  the 
Courtney  Commission  was  appointed  in  1902  to  investigate  their 
grievances. 

THE    COURTNEY    COMMISSION 1902. 

This  commission  held  rather  arbitrarily  that  no  more  than  was 
necessary  to  pay  pensions  was  being  withheld.  The  contention  that 
salaries  are  lower  for  those  employees  who  come  under  the  pension 
act  than  for  similar  employees  outside  a  pension  act  was  practically 
admitted.  The  commission  recommended  that  life  insurance  of  a 
certain  form  be  granted  in  lieu  of  part  of  the  pension.  This  recom- 
mendation was  submitted  to  popular  vote  of  the  employees,  with  the 
result  that  80  per  cent  of  the  service  voted  for  the  change. 

THE    PRESENT    LAW ACT    OF    1909. 

In  accord  with  this  recommendation  a  law  was  passed  in  1909 
reducing  the  amount  of  pension  by  one-quarter,  and  substituting,  in 
place  of  this  part  of  the  pension,  benefits  in  the  form  of  insurance 
against  death  and  cash  payments  in  case  of  withdrawals  from  the 
service  before  receiving  a  pension. 

The  reduced  pension  under  this  law  is  thus  one-eightieth  of  the 
average  annual  salary  for  each  year  of  service,  instead  of  one-sixtieth 
as  had  been  the  case  since  1859.  In  addition,  the  treasury  is  authorized 


23 


to  give  a  retiring  employee  a  lump  sum  of  one-thirtieth  of  the  average 
annual  salary  multiplied  by  the  number  of  years  of  service,  provided 
the  additional  allowance  shall  not  exceed  one  and  one-half  times  the 
average  annual  salary.  Continuance  in  active  service  after  age  65  is 
discouraged  by  reducing  the  additional  allowance  in  case  of  service 
after  this  age. 

PENSIONS  AND  GRATUITIES  TO  LONDON    METROPOLITAN   POLICE. 

The  pension  system  for  London  police  contains  a  few  features 
to  which  special  attention  should  be  directed.  A  distinction  is  made 
in  the  London  Police  Act  of  1890  between  pensions  and  gratuities. 
When  the  retiring  allowance  is  given  automatically,  it  is  called  a  pen- 
sion. When  an  allowance  is  obtained  by  special  decision  of  the  Police 
Authority  which  grants  pensions,  it  is  called  a  gratuity.  Thus,  if  at 
any  time  during  service,  a  policeman  is  incapacitated  for  the  perform- 
ance of  his  duty  by  infirmity  of  mind  or  body  occasioned  by  an  injury 
received,  without  his  own  fault,  in  the  execution  of  his  duty,  he  receives 
a  pension.  If  the  incapacity  is  not  directly  the  result  of  an  injury  thus 
received,  the  Police  Authority  may,  if  it  sees  fit,  grant  him  a  gratuity. 
Similarly,  if  a  policeman  dies  while  in  the  police  force  from  the  effect 
of  an  injury  received,  without  his  own  fault,  in  the  execution  of  his 
duty,  a  pension  is  granted  to  his  widow,  and  allowances  are  given  to 
his  children.  If  a  policeman  dies  while  in  the  police  force  from  any 
cause,  the  Police  Authority  may,  if  it  sees  fit,  grant  gratuities  to  his 
widow  and  children,  or  any  of  them. 

The  London  police  system  differs  from  the  general  civil  service 
system  in  that  final  salary,  with  a  qualification,  instead  of  average 
salary,  is  the  basis  for  determining  the  amount  of  the  pension.  The 
qualification  applies  where  a  policeman  has  been  promoted  within  three 
years  previous  to  retirement.  In  this  case,  the  pension  is  a  percentage 
of  his  average  annual  pay  for  the  three  years,  and  the  percentage 
depends  on  the  number  of  years  of  service  just  as  in  the  general  civil 
service  system  explained  above. 

A    PENSION    AS   DEFERRED    PAY. 

In  the  general  act  of  1909  it  is  recognized  that  the  value  of  a 
pension  is  taken  into  account  in  fixing  salaries,  and  that  the  pension 
is  a  form  of  deferred  pay.1  In  brief,  after  a  hundred  years  of  experi- 
ence with  civil  service  pensions  in  England,  the  pensions  are  regarded 
very  generally  as  deferred  pay.  Thus  an  employee  acquires  an  equity  in 
the  nature  of  a  pension  expectation ;  and  to  leave  the  service  without 
a  consideration  for  this  equity  is  analogous  to  lapsing  life  insurance 
without  a  surrender  value.  Moreover,  such  pensions  as  do  not  offer 
some  settlement  of  the  equity  involved  in  pensions  in  cases  of  death 
and  withdrawal  are  likely,  in  time,  to  interfere  seriously  with  the 
mobility  of  labor  and  with  competition  among  employers.  It  was  in 

*The  Courtney  Commission,  after  careful  investigation,  held  that  a  pension  is 
deferred  pay,  but  with  a  qualification  that  is  of  interest.  The  commission  took  the 
view  that  a  pension  is  remuneration  for  services,  but  that  it  is  also,  in  part  at 
least,  a  reward  for  continuity  of  service  contingent  on  the  continuity  being  main- 
tained throughout  a  definite  period,  and  not  accruing  from  year  to  year. 


the  law  of  1909  that  the  principle  was  recognized  that  even  with  a 
noncontributory  system  the  employee  who  withdraws  from  the  service 
should  receive  certain  benefits.  He  should  receive  these  because  he 
worked  for  lower  wages  or  salary  than  he  would  have  done  if  no 
pension  system  had  existed.  In  other  words,  even  a  noncontributory 
system  of  pensions  has  in  England  become  virtually  contributory, 
because  wages  and  salaries  are  held  at  a  lower  level  on  account  of  the 
pension  prospects.  This  appears  to  be  the  view  of  the  majority  of 
government  employees  in  England,  as  shown  by  their  votes,  after  an 
experience  since  1859  with  noncontributory  pensions. 

CONTRIBUTORY   AND    NONCONTRIBUTORY    PENSION    PLANS    IN    GREAT 

BRITAIN. 

To  review  briefly  the  experience  of  *  Great  Britain,  we  note  the 
following  periods  with  respect  to  contributory  and  noncontributory 
systems : 

1810  to  1822,  totally  noncontributory  pension  plan. 

1822  to  1824,  half  contributory  pension  plan. 

1824  to  1829,  totally  noncontributory  pension  plan. 

1829  to  1857,  totally  contributory  pension  plan. 

1859  to  present  date,  totally  noncontributory  pension  plan,  with 
reduced  pensions  since  1909  and  substitution  of  some  withdrawal 
benefits  and  insurance. 

ON    THE    COST    OF    PENSIONS   -IN    GREAT    BRITAIN    AS    A    PERCENTAGE    OF 
CORRESPONDING    SALARIES    FOR    ACTIVE    STAFF. 

The  ratio  of  pension  payments  to  salary  payments  depends  on 
several  factors.  When  a  department  is  relatively  new,  or  has  experi- 
enced a  period  of  rapid  growth  within  the  past  20  or  25  years,  it  is 
likely  to  have  a  relatively  large  number  of  young  men  on  the  salary 
roll.  On  the  other  hand,  if  a  department  is  decreasing  in  number  by 
failing  to  fill  vacancies,  it  will  probably  have  a  relatively  large  number 
of  old  men.  It  was  reported  before  the  Courtney  Commission  in 
1902  that  the  ratio  of  pension  payments  to  salary  payments  was  only 
about  6  per  cent  in  the  post  office  department,  whereas  in  the  customs 
and  treasury  departments  the  ratio  was  about  30  per  cent.  The  ratio 
of  pension  payments  to  salary  payments  for  the  entire  service  was 
between  16  and  17  per  cent.  As  an  additional  illustration,  we  note 
that  in  1915,  the  London  metropolitan  police  had  a  pay  roll  amounting 
to  $10,060,914  for  salaries  and  $2,946,919  for  the  payment  of  pensions, 
from  which  we  find  that  the  current  cost  of  pensions  is  over  29  per  cent 
of  salaries.  The  post  office  department  in  1902  was  clearly  not  carry-- 
ing its  ultimate  normal  load,*  whereas  the  customs  and  treasury  depart- 
ments probably  were  carrying  theirs. 

VIEWS  HELD  IN  THE  LIGHT  OF  THE  EXPERIENCE  OF  GREAT  BRITAIN. 

Although  one  would  hardly  expect  complete  agreement  on  many 
matters  concerning  pensions,  it  seems  fair  to  say  that  the  following 

*  When  there  is  such  a  distribution  of  apes  as  will  arise  if  a  department  is 
simply  maintained  at  a  fixed  size  by  the  addition  of  young  men  to  replace  with- 
drawals and  deaths,  we  say  that  the  system  carries  its  ultimate  normal  load. 


25 

views  are  pretty  generally  held  among  employees  and  others  familiar 
with  the  experience  of  Great  Britain: 

1.  The  pensions  are  regarded  as  deferred  pay.     The  fact  that 
70,000  of  the  total  of  100,000  employees  belonged  to  the  Deferred  Pay 
Committee  shows  very  clearly  the  views  of  employees.     The  govern- 
ment, moreover,  supported  the  contention  of  the  employees  in  this 
matter  when  it  provided  a  form  of  refund  through  the  law  of  1909. 

2.  The  noncontributory  pension  tends  to  lower  the  level  of  wages 
or  salaries  of  the  participants. 

3.  The  civil   service   employee   of   Great   Britain   feels   that   he 
acquires  an  equity  in  a  pension  by  working  for  a  lower  salary  than 
that  which  would  be  paid  him  if  no  pension  system  existed,  and  that 
some  benefit  should  be  paid  when  the  employee  leaves  the  service  by 
death  or  retirement. 

COMPARISON    WITH    PENSIONS   UNDER   ILLINOIS   LAW. 

1.  Since  each  of  our  Illinois  pension  systems  for  public  employees 
is  at  least  slightly  contributory,  we  may  say  that  the  contributory  prin- 
ciple is  to  some  extent  recognized.     Furthermore,  if  it  should  occur 
that  the  contributions  will  carry  but  a  small  per  cent  of  the  ultimate 
normal  load,  there  is  little  doubt  that,  in  time,  the  pension  will  be  taken 
into  account  in  fixing  salaries  and  wages  in  so  far  as  the  pensions  are 
not  directly  contributory. 

2.  The  amount  of  the  benefit  under  the  civil  service  pensions  ot 
Great  Britain  is  graded  according  to  length  of  service,  with  a  maximum 
based  on  40  years  of  service,  whereas  our  pensions  in  Illinois  do  not 
vary  with  length  of  service. 

3.  The  pensions  of  Great  Britain  for  government  employees  and 
for  teachers  have,  in  general,  a  common  basis  of  calculation;  namely, 
a  percentage  of  average  salary1  throughout  the  entire  period  of  service. 
On  the  contrary,  the  bases  of  calculation  in  our  principal  funds  vary 
widely.    For  instance,  the  firemen's  pension  is  on  the  basis  of  half  the 
final  salary,  whereas  the  teachers'  fund  and  municipal  employees'  funds 
provide  uniform  amounts  without  reference  to  the  salary.    The  British 
standard  is  very  generally  in  use  throughout  Europe,  and  appears  to 
be  a  more  satisfactory  basis  than  final  salary,  as  final  salary  is  capable 
of  easy  manipulation. 

4.  Retirement  under  the  British  law  is  permitted  at  age  60,  and 
some  pressure  is  brought  to  induce  retirement  at  age  65  by  reducing 
the  benefits  to  be  received  after  that  age.    The  retirements  under  the 
Illinois  law  are,  in  general,  at  younger  ages;  and  for  policemen  and 
firemen  no  age  qualification  is  required. 

5.  The  cost  of  the  British  system  for  some  departments  has  much 
more  nearly  approached  the  ultimate  normal  load  than  has  the  current 
cost  of  systems  in  force  in  Illinois,  on  account  of  the  longer  time  the 
British  system  has  been  in  force.  The  current  cost  in  some  deparments 
of  the  English  government  service  is  over  30  per  cent , of  the  salary 
payments. 

1  See   page   23   for   modifications   in   the   case   of   London   police. 


TEACHERS'  PENSIONS  IN  GREAT  BRITAIN.1 

EARLY   PENSION   PLANS. 

Pensions  for  certain  teachers  have  been  paid  in  Great  Britain 
since  1846.  In  1862,  action  was  taken  which  made  it  impossible  to  add 
to  the  existing  pension  roll,  but  this  action  was  without  prejudice  to 
the  validity  of  pensions  already  granted.  In  1875,  provision  was  made 
to  grant  further  pensions,  but  with  decided  limitations  as  to  the  number 
of  pensions  to  be  allowed  in  England  and  Scotland  together.  These 
pensions  were  intended  to  facilitate  the  appointment  of  competent 
successors  in  places  of  meritorious  but  incapacitated  teachers.  The 
pensions  were  administered  through  Committees  of  the  Council  on 
Education.  That  the  plans  were  inadequate  to  satisfy  anything  except 
the  most  pressing  needs,  is  shown  by  the  fact  that  in  1900  the  rules 
provided  that  the  maximum  number  and  value  of  pensions  receivable 
at  one  time,  in  England  and  Scotland  together,  and  including  pensions 
then  current,  should  be  as  follows : 

73  pensions  of  30  pounds  each 2,190  pounds 

394  pensions  of  25  pounds  each 9,850  pounds 

563  pensions  of  20  pounds  each 11,260  pounds 

Donations  and  special  gratuities 440  pounds 

23,740  pounds 

These  pensions,  provided  by  a  sort  of  secondary  legislation  of 
the  Committee  of  Council,  represented  about  all  that  existed  in  the 
line  of  pension  systems  for  public  school  teachers  until  the  legisla- 
tion of  1898.  Since  the  law  of  1898  became  operative,  the  amount 
expended  for  the  pensions  administered  by  the  Committee  of  Coun- 
cil has  gradually  decreased.  In  fact,  teachers  who  accept  the  act  of 
1898  are  debarred  from  the  earlier  form  of  pensions,  unless  they  are 
unable  to  qualify  under  the  new  regime  after  such  acceptance. 

THE  ELEMENTARY  SCHOOL  TEACHERS    (SUPERANNUATION)    ACT  OF  1898. 

The  Elementary  School  Teachers  (Superannuation)  Act  of  1898, 
was  the  law  through  which  Parliament  for  the  first  time  established 
state  pensions  for  teachers.  The  age  of  retirement  was  65  years. 
The  male  teacher  was  to  contribute  three  pounds  ($14.60)  and  the 
female  two  pounds  ($9.73),  to  be  used  to  purchase  a  deferred  annuity 
beginning  at  the  age  of  65.  The  government  was  to  provide  from 
public  funds  an  allowance  of  ten  shillings  ($2.43)  for  each  complete 
year  of  service. 

THE  AMENDMENT  OF   1912. 

The  law  was  amended  in  1912,  and  a  distinct  law  was  then 
enacted  for  Scotland.  The  amendatory  act  fixed  the  rates  of  con- 
tribution at  three  pounds,  twelve  shillings  ($17.52)  and  two  pounds, 
eight  shillings  ($11.68)  per  year  for  men  and  women  respectively,  and 
increased  the  government  allowance  from  ten  shillings  ($2.43)  to 

1  See  Sies,  R.  W.,  Teachers'  Pension  Systems  in  Great  Britain,  U.   S.  Bureau 
of  Education,  Bulletin,  No.   34,  1913. 


27 

one  pound  ($4.86)  for  each  complete  year  of  service.  Under  the 
present  provisions  a  man  with  40  years  of  service  at  age  65  receives 
a  pension  of  seventy-eight  pounds  ($379.59),  of  which  thirty-eight 
pounds,  ($184.93)  are  provided  by  his  contribution  and  forty  pounds 
($194.66)  from  public  funds.  A  woman,  aged  65,  with  40  years  of 
service,  receives  fifty-nine  pounds  ($287.12).  Provisioiji  is  made 
for  the  actuarial  examination  of  the  funds  at  stated  times  to  deter- 
mine whether  the  experience  is  in  accord  with  expectations. 

SYSTEM  IN  FORCE  IN  SCOTLAND  AFTER  1912. 

In  1912,  when  the  Superannuation  Act  of  1898  ceased  to  apply  to 
Scotland,  a  system  that  merits  careful  study  was  inaugurated  in  that 
country  under  competent  actuarial  advice :  School  boards  are  required 
to  pay  certain  amounts  into  a  State  Teachers'  Superannuation  Fund. 
Certain  amounts  are  also  to  be  deducted  from  the  salaries  of  teachers 
and  paid  into  this  fund.  The  conditions  for  retirement  are  at  least 
]0  years  of  service  and  60  years  of  age,  or  total  and  permanent  dis- 
ability not  caused  by  the  teacher's  own  misconduct.  In  case  of  teach- 
ers entering  the  service  after  the  law  was  in  force,  the  amount  of  the 
pension  is  one-sixtieth  of  the  average  annual  salary  throughout  the 
period  of  service  multiplied  by  the  number  of  years  of  service,  pro- 
vided the  pension  may  not  exceed  two-thirds  of  such  average  salary. 
Provision  is  made  for  the  return  of  contributions  on  withdrawal 
from  service  or  in  case  of  death.  At  the  end  of  every  five  years  from 
the  beginning  of  the  scheme,  an  investigation  and  valuation  of  the 
fund  must  be  made  by  an  actuary  appointed  by  the  department. 

OLD  AGE  PENSION  SYSTEM  OF  GREAT  BRITAIN  AND  IRELAND. 
CONDITIONS  OF  PAYMENT  OF  OLD  AGE  PENSIONS. 

These  pensions  are  paid  under  a  law  entitled  the  "Old  Age 
Pension  Act,  1908,"  with  certain  amendments  which  do  not  affect  the 
principles  of  the  act  but  merely  change  certain  regulations.  The 
scheme  went  into  effect  January  1,  1909.  Any  person  who  fulfills 
the  following  conditions  is  entitled  to  a  pension: 

1.  Age  70. 

2.  A   British   subject   for   at  least   20   years,   during  twelve   of 
which  he  held  residence  in  the  United  Kingdom. 

3.  Yearly  income  not  greater  than  thirty-one  pounds,  ten  shil- 
lings  ($153). 

Persons  are  disqualified  under  the  following  conditions: 

1.  Habitual  failure  to  work  before  age  70. 

2.  Detention  in  an  asylum  under  the  Lunacy  Act  of  1890. 

3.  Conviction  and  imprisonment  without  the  option  of  a  fine — in 
which  case  a  period  of  from  two  to  ten  years  must  elapse  before  a  per- 
son is  qualified. 

Until  1911,  there  was  the  additional  condition  that  the  person  to 
receive  the  pension  should  not  be  in  receipt  of  poor  relief.    The  effect 
of  removing  this  restriction  was  to  transfer  on  January  1,  1911,  a 
total  of  122,000  regular  paupers  to  the  list  of  old  age  pensioners. 
—3  PL 


PENSION    RATES. 

Pensions  are  granted  at  rates  shown  in  the  following  table : 

ANNUAL    INCOME.  WEEKLY    BENEFIT. 

Up  to  21  pounds ($102.20)  5  shillings ($1.22) 

From  21  pounds  to  23:12:6 ($114.97)  4  shillings ($0.97) 

From  23:12:6  to  26:5 ($127.75)  3  shillings ($0.73) 

From  26:5  to  28:17:6 ($140.50)  2  shillings ($0.49) 

From  28:17:6  to  31:10 ($153.41)  1  shilling ($0.24) 

STATISTICS  ON  NUMBER  OF  OLD  AGE  PENSIONERS  AND  COST  OF  OPERATION. 

The  number  of  pensioners  under  England's  Old  Age  Pension  Act 
in  1909  was  647,494;  in  1913  the  number  had  increased  to  967,921. 
The  first  year's  figures  reported  run  from  April  1,  1909,  to  March  31, 
1910.  This  is  called  the  fiscal  year  1909.  On  account  of  the  changed 
social  conditions  caused  by  the  European  war,  it  is  perhaps  just  as 
well  not  to  report  later  figures.  The  cost  of  these  pensions  increased 
from  8,465,231  pounds  in  1909,  to  12,130,609  pounds  ($59,033,610)  in 
1913.  The  average  benefit  in  1913  was  twelve  pounds,  ten  shillings 
($60.98)  per  year. 

It  appears  that  the  number  of  pensioners  in  England,  Scotland 
and  Wales  is  between  50  and  55  per  cent  of  the  male  population  over 
70  years  of  age,  and  between  65  and  75  per  cent  of  the  female  popula- 
tion of  corresponding  age.  In  Ireland  the  percentage  of  the  popula- 
tion appears  to  be  somewhat  higher.  One  of  the  most  surprising 
features  in  this  system  of  pensions  is  the  smallness  of  the  benefit  to 
the  individual,  but  the  large  number  of  individuals  who  are  on  the 
pension  list. 

CRITICISM   OF  THE  SYSTEM. 

The  National  Civic  Federation  issued  a  committee  report 1  in  1914 
containing  a  statement  of  the  operation  of  the  above-described  Old 
Age  Pension  Act.  It  appears  that  the  committee  was  interested  in 
these  pensions  from  the  standpoint  of  the  welfare  of  the  wage  earner  as 
well  as  that  of  the  employer  and  general  public.  At  least,  Mr.  J.  W. 
Sullivan,  representing  wage  earners,  was  chairman  of  the  committee. 

This  report  is  decidedly  critical  toward  this  pension  system,  as  is 
shown  by  the  following  statements : 

"Under  the  British  law  an  aged  person  does  not  have  to  be  desti- 
tute or  in  fact  in  need  of  public  support  to  become  a  pensioner ;  for  he 
or  she  may  be  rightfully  dependent  upon  sufficiently  well-to-do  rela- 
tives. Family  life  among  the  working  classes,  as  indeed  among  all 
other  classes,  is  more  or  less  communistic.  The  family,  not  the  indi- 
vidual, becomes  the  natural  social  unit.  *  *  *  By  an  understand- 
ing between  parents  and  their  offspring,  the  pension  may  be  drawn  a< 
drink  or  pin  money.  Wages  may  be,  and  it  is  stated  often  are,  reduced 
by  consent  just  so  much  as  is  necessary  to  bring  the  employee  within 
the  pension  law  limit.  In  fact,  it  is  commonly  admitted  that  when  the 
law  went  into  operation  the  general  average  wages  of  laboring  men 
over  70  went  down  eight  shillings  a  week,  so  that  the  full  pension  could 

1  Report  of  the  Committee  on  Preliminary  Foreign  Inquiry,   Social  Insurance 
Department,   November,   1914. 


29 

be  drawn.  *  *  *  The  fundamental  objection  that  this  system  of 
relief  discourages  thrift,  and  destroys  the  sense  of  individual  and 
family  responsibility,  needs  only  to  be  pointed  out.  The  English  sys- 
tem prescribes  no  criterion  of  merit  at  all.  It  seems  to  be  indiscrim- 
inate poor  relief,  pure  and  simple,  merely  disguised  in  name,  and  in 
a  form  peculiarly  liable  to  abuse  and  fraudulent  imposition." 

Whether  we  accept  all  of  this  criticism  as  conclusive,  or  not,  it 
seems  clear  that  the  so-called  old  age  pensions  of  Great  Britain  are 
not  paid  to  individuals  as  a  reward  for  service  to  society ;  and  that 
they  are  therefore  more  in  the  nature  of  poor  relief — so  disguised  as 
to  remove  the  stigma  that  goes  with  many  forms  of  such  relief — than 
in  the  nature  of  a  pension.  Moreover,  it  also  appears  that  as  a  means 
of  relief  the  system  is  not  effective  in  distinguishing  between  the  exist- 
ence and  nonexistence  of  need  on  the  part  of  the  participant. 

COMPARISON  WITH  PENSION  LAWS  OF  ILLINOIS. 

In  the  pension  laws  of  Illinois  we  find  very  little  that  resembles 
the  system  of  so-called  old  age  pensions  of  Great  Britain ;  but  in  con- 
nection with  the  tendency  to  use  the  word  "pension"  for  "poor  relief," 
it  may  be  worth  while  to  call  attention  to  the  fact  that  we  have  in  the 
State  of  Illinois  a  law  that  is  sometimes  referred  to  as  the  Mothers' 
Pension  Act,  and  another  that  is  commonly  known  as  the  Pension  Act 
for  the  Blind.  It  appears  that  the  word  "pension"  does  not  occur  in 
either  of  these  acts.  The  former  is  correctly  denominated  as  "An  Act 
to  Provide  for  the  Partial  Support  of  Mothers  *  *  *,"  and  the 
latter  as  "An  Act  for  the  Relief  of  the  Blind."  The  payments  under 
these  acts  are  made  with  a  view  to  the  relief  of  need. 

GERMANY. 
CIVIL  SERVICE  PENSIONS. 

Public  pension  systems  for  the  employees  of  the  government  of  the 
German  Empire,  for  employees  of  the  Confederated  States  and  for 
employees  of  municipalities  within  the  Empire  follow  the  same  general 
lines  and  differ  only  in  minor  particulars.  The  conditions  for  the  pay- 
ment of  the  pensions  are  nearly  uniform.  For  retirement,  an  age  limit 
of  65  years  or  disability  is  a  necessary  condition.  The  pensions  paid 
are  graded  according  to  length  of  service  and  average  amount  of 
salary  throughout  the  period  of  service.  They  vary,  in  general,  from 
33J3  per  cent  to  75  per  cent  of  the  average  salary.  If  a  pensioner 
receives  pay  from  holding  any  other  public  office,  the  payment  of  the 
pension  is  suspended  in  so  far  as  the  salary  connected  with  the  new 
office,  together  with  the  pension,  would  exceed  the  last  salary  of  the 
employee  at  the  time  of  retirement. 

Although  the  systems  for  the  different  parts  of  the  country  do 
not  differ  greatly,  it  may  be  worth  while  to  characterize  briefly  the 
system  for  officers  of  the  Empire  and  for  those  of  the  leading  States. 

OFFICERS  OF  THE  EMPIRE. 

These  pensions  are  provided  for  by  laws  of  1873  and  1907.  The 
following  fundamental  conditions  are  prescribed:  (1)  The  employee 


30 

must  have  a  life  appointment,  and  the  work  of  the  office  must  be  his 
life  work;  (2)  he  must  draw  a  salary  out  of  the  budget  of  the  Empire. 

The  pension  may  be  obtained  at  age  65  without  proof  of  dis- 
ability, provided  other  conditions  are  satisfied.  If,  upon  reaching 
that  age,  an  officer  does  not  elect  to  retire  voluntarily,  the  determina- 
tion of  the  question  whether  he  shall  be  compelled  to  leave  the  service 
against  his  will,  rests  with  a  delegation  of  a  higher  court  of  the  Empire. 
If  disability  is  incurred  in  consequence  of  performing  the  duties  of  an 
office  before  the  officer  has  10  years  of  service,  the  amount  of  pension 
is  one-third  of  the  average  salary.  For  each  additional  year  after 
10  years  of  service  up  to  30  there  is  added  one-sixtieth  to  the  one- 
third,  and  from  30  years  on  there  is  added  one-one  hundred  and 
twentieth  for  each  year  of  service. 

OFFICERS      OF      CONFEDERATED       STATES — PRUSSIA,       BAVARIA,       SAXONY, 
WURTTEMBERG,  BADEN. 

Civil  service  pensions  rest  on  laws  enacted  and  amended  at 
various  times  since  1872.  Pensions  are  awarded  on  grounds  of  dis- 
ability after  10  years  of  service,  or  on  becoming  of  age  65  with  at 
least  10  years  of  service.  Those  who  are  forced  into  retirement 
have  recourse  to  .a  hearing  before  the  Staatsministerium.  The  rates 
of  pension  are  the  same  as  in  the  Empire.  The  provisions  for  civil 
service  pensions  apply,  in  general,  to  teachers  and  officers  in  the 
secondary  and  higher  schools,  but  not  to  university  teachers.  The  latter 
continue  to  draw  their  full  salaries,  for  life  even  when  they  are  retired 
from  active  teaching.  This  distinction  is  no  doubt  conferred  with  a 
view  to  rendering  the  position  of  university  professor  more  attractive, 
and  to  making  the  professor  fairly  free  to  continue  his  scientific 
research  even  in  old  age. 

OFFICERS  OF  CITIES. 

The  city  officers,  generally  speaking,  in  case  of  disability  receive 
pensions  according  to  the  provisions  for  State  officers.  The  retire- 
ment of  city  officers  is  not  uniformly  at  age  65,  but  is  regulated  some- 
what by  ordinances.  In  general  we  may  say,  however,  that  these  pen- 
sions do  not  differ  essentially  from  those  for  officers  of  the  State. 

COMPARISON   WITH   CONDITIONS  IN  ENGLAND. 

As  in  England,  we  find  the  pensions  for  government  employees 
on  a  noncontributory  basis.  It  is  admitted,  in  general,  that  the 
salaries  are  kept  lower  than  those  paid  for  similar  work  outside  the 
government  service.  So  far  as  government  employees  are  concerned, 
there  seems  to  be  very  little  difference  in  principle  between  the  German 
and  English  systems.  The  German  system  requires  age  65  for  service 
retirement,  whereas  England  permits  retirement  at  60.  Germany,  in 
general,  includes  teachers  in  this  noncontributory  system,  whereas  in 
England  the  system  for  teachers  is  distinct  and  is  contributory  to  the 
extent  of  providing  about  one-half  the  benefits. 


31 

OLD  AGE  OR  INDUSTRIAL  PENSIONS  IN  GERMANY. 

In  the  matter  of  industrial  pensions  Germany  has  been  unques- 
tionably the  leader  of  all  countries.  In  this  class  of  pensions  her 
system  differs  decidedly  from  that  of  England.  The  old  age  pension 
system  of  Germany  dates  back  to  the  law  of  1889 ;  and  this  law  is 
regarded  as  one  of  the  pieces  of  constructive  statesmanship  of  Bis- 
marck. The  expense  of  this  system  falls  jointly  on  the  employers 
and  the  employees  and  the  government.  According  to  some  author- 
ities, the  experience  of  Germany  constitutes  the  most  complete  and 
successful  solution  of  the  problem  of  caring  for  aged  and  disabled 
industrial  workers.  Although  we  have  no  reason  to  question  this 
statement,  when  applied  to  German  conditions,  it  leads  to  a  question- 
able inference  if  we  conclude  that  such  a  system  would  work  well  in 
America.  This  pension  system  comes  under  what  is  called  compulsory 
old  age  and  permanent  disability  insurance.  Such  insurance  is  com- 
pulsory if  the  income  is  less  than  2,000  marks  ($476).  The  partici- 
pants include  all  laborers,  employees  in  commercial  establishments, 
domestic  servants,  and  certain  other  employees.  The  Imperial  Gov- 
ernment contributes  to  each  pension  the  sum  of  50  marks  ($11.90) 
from  its  own  funds.  It  takes  care  of  part  of  the  expenses  of  admin- 
istration, and  pays  part  of  the  contributions  while  the  participant  is 
on  military  duty.  The  weekly  contributions  are  uniform  for  all  classes, 
and  are  graded  according  to  amount  of  wages  from  Pf.  14  ($.033)  to 
Pf.  36  ($.086).  The  age  of  retirement  is  70.  The  average  of  the 
pensions  paid  is  a  little  over  160  marks,  or  between  $38  and  $39  per 
year.  The  features  that  probably  stand  out  most  conspicuously  in 
this  scheme  are  the  smallness  of  the  contributions  from  individuals 
and  the  smallness  of  the  individual  benefits. 

Although  we  have  no  system  in  America  that  is  closely  analogous 
to  these  systems  of  old  age  pensions,  the  main  features  of  such  schemes 
are  outlined  here  in  order  to  give  as  comprehensive  a  view  of  the  pen- 
sion situation  abroad  as  is  possible  in  a  brief  outline,  and  to  correct 
an  impression  that  those  pensions  are  on  what  would  be  regarded  as  a 
liberal  basis  for  an  individual  employee  in  America. 

AUSTRO-HUNGARY. 

CIVIL  SERVICE  PENSIONS. 

In  Austro-Hungary  there  is  a  thoroughly  developed  system  of 
pensions  for  government  employees,  which  dates  back  to  1771.  It 
provides  for  widows,  and  orphans  when  both  parents  are  dead.  Un- 
fortunately, there  are  in  reality  about  forty  different  pension  systems 
in  Austro-Hungary  for  different  classes  of  civil  service  employees. 
In  general,  the  pension  for  invalidity  after  10  years'  service  varies 
from  33  to  40  per  cent  of  average  salary.  This  increases  with  service 
until  the  end  of  30  to  40  years  of  service.  The  widows  obtain  about 
one-third  of  the  active  pay,  and  orphans  about  one-fifteenth  each  of 
the  active  pay. 


32 

ENUMERATION  OF  SYSTEMS,   WITH   METHODS  OF   MEETING  THE  COSTS  OF 

PENSIONS. 

The  following  are  the  principal  systems  in  force  in  Austro- 
Hungary : 

1.  Systems  in  which  payments  are  granted  by  imperial  decisions. 

2.  Systems  without  contributions  from  employees. 

3.  Systems  with  moderate  contributions  from  employees,  but  not 
sufficient  in  amount  to  keep  the  fund  actuarially  solvent. 

4.  Systems  either  with  or  without  contributions  from  employers 
where  future  pension  burdens  are  cared  for  by  creating  a  reserve  in 
accord  with  actuarial  principles. 

5.  Systems  in  which  future  pension  burdens  are  covered  partly  by 
the  creation  of  funds,  and  the  additional  cost  is  paid  by  the  treasury. 

Pensions  for  the  bulk  of  civil  service  employees  are  characterized 
by  the  following  features:  Pensions  sufficient  to  give  a  subsistence 
are  secured  by  the  treasury  without  contributions  from  employees,  and 
actuarial  principles  are  introduced  to  insure  proper  reserves  and 
benefits  for  the  additional  amount  of  the  pensions. 

Mr,  Blascke,  the  noted  actuary,  has  expressed  the  opinion  that 
the  pension  situation  has  already  probably  entered  into  substantially 
its  constant  period.  The  annual  pension  payments  amount  to  between 
30  and  40  per  cent  of  active  salaries. 

FRANCE. 

SYSTEM    OF    PENSIONS. 

Under  the  law  of  April  5,  1910,  France  has  a  system  of  pensions 
that  is  in  the  nature  of  annuities  provided  by  equal  payments  from 
employees  and  employers  into  the  funds  created  and  to  be  used  in 
accord  with  actuarial  principles.  This  pension  law  applies  not  only 
to  wage  earners  of  all  trades  and  professions,  but  also  to  public  em- 
ployees not  entitled  to  retiring  allowances  under  previous  laws  and 
regulations.  All  wage  earners  and  eligible  public  employees  in  the 
country  receiving  less  than  3,000  francs  ($579)  a  year  are  required 
to  become  participants.  On  the  lowest  scale  of  contribution  a  male 
participant  receives  at  age  65  a  pension  of  $82.80.  He  is  not,  how- 
ever, limited  to  the  minimum  contribution,  and  the  pension  may  be 
made  whatever  he  desires  or  can  afford  in  contributions.  The  retire- 
ment age  is  age  65. 

The  most  important  group  exempted  from  the  system  inaugurated 
by  the  law  of  1910  is  the  one  composed  of  public  employees  subject 
to  the  law  of  1853.  This  group  receives  annuities  paid  directly  from 
the  public  exchequer,  but  deductions  are  made  from  salaries.  In 
general,  France  makes  comparatively  large  deductions  from  salaries 
to  provide  pensions. 

French  State  Railway  employees  are  retired  at  the  age  of  55, 
which  is  a  low  age  of  retirement  in  Europe.  For  covering  such  pen- 
sion cost,  employees  make  regular  contributions  of  5  per  cent  of  their 
salaries  and  additional  contributions  of  one-twelfth  of  a  year's  salary 
when  newly  admitted,  and  one-twelfth  of  increases  in  salary  for  the 
year  following  such  increase.  The  railway  administration  estimates 


33 

that  it  will  contribute  the  remaining  half  of  the  cost  of  the  pensions. 
It  is  the  tendency  in  France  to  compel  the  purchase  of  annuities, 
rather  than  to  offer  noncontributory  pensions. 

NEW  ZEALAND. 

On  account  of  the  fact  that  New  Zealand  has  been  one  of  the 
most  progressive  countries  in  matters  of  pension  plans  and  has  tried 
various  methods  of  dealing  with  the  superannuation  problem,  it  seems 
worth  while  to  include  this  country  in  our  study  of  pension  experi- 
ences. 

CIVIL  SERVICE  PENSIONS. 

The  plan  of  granting  straight  pensions  and  gratuities  out.  of  the 
treasury  was  begun  in  1858,  and  continued  for  thirteen  years,  when 
it  was  abolished  chiefly  because  of  the  cost  of  proceeding  with  the 
plan.  For  the  next  thirteen  years,  the  government  merely  granted 
"compensation"  (compensation  for  the  loss  of  office)  amounting  to 
one  month's  salary  for  each  year  of  service.  From  1886  to  1893,  5 
per  cent  was  deducted  from  the  salaries  of  civil  service  employees 
to  be  invested  and  returned  with  interest  when  such  employees  left 
the  public  service.  In  1893  there  was  adopted  compulsory  insurance 
through  the  Government  life  insurance  office.  This  insurance  pro- 
vided a  death  benefit  in  case  of  death  before  age  60,  and  a  life  annuity 
if  living  at  that  age.  Although  this  method  of  providing  for  retire- 
ment proved  unsatisfactory,  no  legislation  of  a  general  nature  was 
enacted  until  tlie  law  of  1907,  although  laws  for  special  classes,  such 
as  policemen,  teachers  and  government  railway  employees,  were  passed 
within  the  period. 

THE  GENERAL  LAW  OF  1907. 

The  general  law  enacted  in  1907  applies  to  all  permanent  civil 
service  employees  not  included  in  police,  teachers'  and  railway  funds. 
All  new  entrants  into  the  civil  service  a.re  compelled  to  join  the  fund. 
It  is  a  noteworthy  feature  that  the  rate  of  contribution  varies  from 
5  to  10  per  cent  of  the  salary,  depending  upon  the  age  of  the  entrant 
into  the  service.  There  is  provided  a  government  subsidy  of 
20,000  pounds  ($97,330)  a  year,  together  with  such  annual 
amounts  as  the  report  of  the  actuary  shows  to  be  necessary  to 
meet  the  charges  on  the  fund  during  the  ensuing  year.  Pensions  are 
claimable  by  men  at  age  65  or  after  40  years  of  service ;  by  women  at 
age  55  or  after  30  years  of  service.  There  is  no  compulsory  age  of 
retirement.  The  amount  of  the  pension  is  one-sixtieth  of  the  average 
salary  during  the  last  3  years  of  service  multiplied  by  the  number  of 
years  of  service,  and  is  limited  to  two-thirds  of  the  salary.  In  case 
of  withdrawal,  the  contributor  is  entitled  to  a  return  of  his  contri- 
butions, but  without  interest.  In  case  of  death,  either  an  annuity  of 
eighteen  pounds  ($88)  is  granted  the  widow,  or  the  contributions  are 
returned  to  the  estate  of  the  deceased. 

It  is  correct  to  say  that,  in  general,  the  plans  under  the  special  act 
for  policemen,  teachers  and  railway  officers  do  not  differ  essentially 


34 

from  the  plan  under  the  general  act.  It  may  be  noted  that  pensions  for 
policemen  are  claimable  at  age  60  instead  of  65,  but  that  25  years  of 
service  is  an  added  requirement.  The  fund  is  administered  by  the 
Public  Service  Superannuation  Board  of  ten  members,  of  whom  five 
are  appointed  by  the  Governor  and  five  elected  by  the  contributors. 

OLD  AGE  PENSIONS. 

In  1898,  New  Zealand  enacted  an  old  age  pension  act  making  a 
person  who  satisfies  the  following  conditions  eligible,  provided  he  is 
not  an  Asiatic: 

1.  Income  of  less  than  50  pounds  ($243.32)  per  year. 

2.  Accumulated  property  of  a  value  less  than  260  pounds. 

3.  Residence  in  the  colony  as  a  citizen  for  at  least  25  years. 

4.  Age  65  years. 

These  pensions  are  on  a  totally  noncontributory  basis. 

CONCLUSION. 

It  is  an  observation  worth  making  that  New  Zealand  has  changed 
from  a  system  of  noncontributory  pensions  for  government  employees 
(adopted  in  1858)  to  a  system  which  is  almost  totally  contributory, 
and  that  it  has  at  the  same  time  established  old  age  pensions  on  a  non- 
contributory  basis. 

GENERAL  SUMMARY  AND  COMPARISONS. 

We  make  the  following  general  observations  from  the  foregoing 
outline  of  the  operation  of  pension  plans: 

METHODS   OF    MEETING  THE   COSTS   OF   PENSIONS. 

In  Great  Britain  there  exist  noncontributory  pensions  for  the 
bulk  of  permanent  public  employees,  but  teachers  have  a  contributory 
fund  that  is  kept  financially  sound  by  actuarial  examination  and  report 
at  stated  intervals.  In  Germany  we  find  that  teachers  are,  in  general, 
included  with  civil  service  employees  in  the  noncontributory  system. 
England  has  noncontributory  general  old  age  pensions,  whereas  Ger- 
many has  contributory  old  age  pensions  for  industrial  workers. 

In  New  Zealand  we  find  almost  totally  contributory  pensions 
for  government  employees  including  teachers,  and  noncontributory 
general  old  age  pensions.  This  is  exactly  the  reverse  of  the  practice 
in  Germany.  Provision  is  made  by  the  government  subsidy  to  keep 
the  system  of  New  Zealand  actuarially  solvent. 

We  find  that  France  encourages  by  a  sort  of  compulsion  the  pur- 
chase of  annuities,  and  consistent  with  this  practice  we  find  a  system 
of  contributory  pensions  for  public  employees. 

In  Austro-Hungary  we  find  a  great  variety  of  pension  systems 
varying  from  noncontributory  systems  to  those  that  are  totally  con- 
tributory. 

In  a  general  way,  it  is  correct  to  say  that  in  the  practice  of 
foreign  countries,  we  find  precedents  for  a  great  variety  of  systems. 
We  find  that  the  systems  vary  from  those  operating  loosely  without 
much  regard  for  the  probable  future  cost,  to  those  kept,  actuarially 


35 

sound  on  the  theory  that  a  class  of  persons  of  given  age  and  service 
should  be  accumulating  a  sufficient  fund  to  pay  their  own  pensions. 

AGE  OF  RETIREMENT. 

The  age  of  retirement  is  generally  65  years,  but  in  some  cases  is  60 
years.  For  women  in  New  Zealand  it  is  as  low  as  55.  In  respect 
to  age,  the  Illinois  law  for  retirement  for  service  without  age  specifi- 
cations permits  the  retirement  of  policemen  and  firemen  at  much 
younger  ages  than  we  find  in  any  of  the  foreign  countries  examined. 
Even  our  ages  of  retirement  for  teachers  at  50,  houses  of  correction 
employees  at  50,  municipal  employees  at  55  and  public  library  em- 
ployees at  55  seem  to  be  low  in  comparison  with  retirement  ages  of 
foreign  countries. 

AMOUNT  OF   PENSION. 

We  find  that  the  amount  of  the  pension  in  foreign  countries  is 
rarely  based  on  final  salary,  as  it  is  in  some  Illinois  funds,  nor  is  it 
in  any  case  a  flat  sum,  as  it  is  in  our  teachers'  funds  and  in  our  fund 
for  municipal  employees.  In  foreign  systems,  the  pension  is  generally 
a  per  cent  of  average  salary  multiplied  by  years  of  service.  For 
example,  in  a  number  of  funds  cited  above  it  is  one-sixtieth  of  the 
average  salary  for  each  year  of  service  with  a  specification  of  the 
maximum  allowed.  Thus,  with  30  years  of  service,  a  man  obtains  one- 
half  his  average  salary  as  a  pension.  This  method  of  determining  the 
amount  of  pension  obviates  the  possible  abuse  of  raising  a  salary  at 
the  end  of  service  in  order  to  increase  a  pension,  as  is  sometimes  done 
when  pension  is  based  on  final  salary  only. 

EFFECT  OF  NONCONTRIBUTORY  PENSIONS  ON  WAGES. 

It  seems  to  be  generally  recognized  that  the  payment  of  noncon- 
tributory  pensions  leads  to  a  lowering  of  wages. 

LESSON  TO  BE  DRAWN   FROM   THE  EXPERIENCES  OF  FOREIGN    COUNTRIES. 

It  is  not  likely  that  countries  which  began  noncontributory  pen- 
sions sixty  years  ago  had  the  foresight  to  predict  the  present  cost, 
but  fortunately  at  the  present  time  experience  has  taught  us  what  we 
may  expect  if  we  operate  a  pension  system  with  little  or  no  regard 
to  an  adequate  reserve  fund.  The  testimony  that  some  departments 
of  the  governments  in  England,  Germany  and  Austro-Hungary  pay 
from  30  to  40  per  cent  as  much  for  pensions  as  for  salaries  is  the 
answer  of  experience. 


36 


CHAPTER  III. 


HISTORICAL    SKETCH    OF    THE    PENSION    LAWS    OF 

ILLINOIS. 

GENERAL  SURVEY  OF  THE  FIELD. 

Firemen's  Benevolent  Associations. 

The  earliest  legislation  in  Illinois  on  the  subject  of  pensions  that 
the  writer  is  aware  of  was  an  act  of  1852  (Laws  of  1852,  p.  65)  which 
incorporated  the  Firemen's  Benevolent  Association  of  the  City  of 
Chicago  for  the  relief  of  distressed,,  sick  and  disabled  members  and 
their  immediate  families,  and  required  agents  for  insurers  other  than 
Illinois  corporations  to  pay  to  the  association  2  per  cent  of  all  prem- 
iums on  insurance  effected  against  loss  by  fire  in  Chicago.  The  valid- 
ity of  this  compulsory  payment  for  the  relief  of  persons  engaged  in 
a  service  of  public  benefit,  imposed  on  a  class  which  especially  profited 
from  it,  was  upheld  in  Firemen's  Benevolent  Association  v.  Lounsbury, 
21  111.,  511.  The  requirement  was  repealed,  however,  in  1861  (Private 
Laws  of  1861,  pp.  118,  146),  and  the  2  per  cent  tax  made  payable 
to  the  city  of  Chicago  instead.  The  Firemen's  Association  was  dis- 
solved (Private  Laws  of  1861,  p.  47;  Private  Laws  of  1863,  p.  29). 
When  the  Chicago  charter  was  revised  in  1863,  it  was  provided  that 
one-eighth  of  the  proceeds  of  the  2  per  cent  tax  should  be  set  aside 
for  a  fund  for  distressed  firemen  disabled  in  the  service  of  the  city, 
and  disbursed  under  regulations  of  the  city  council  (Chap.  8,  Sees. 
5,  6,  7;  Chap.  12,  Sec.  8,  Private  Laws  of  1863,  pp.  40,  99,  126). 

Thereafter  an  act  of  1867  (Private  Laws  of  1867,  Vol.  1,  p.  147) 
incorporated  the  Benevolent  Association  of  the  Paid  Fire  Department 
of  the  City  of  Chicago,  and  provided  that  the  one-eighth  of  the  fire 
rates  paid  to  the  city,  instead  of  being  disbursed  by  the  city,  should 
be  paid  annually  by  the  city  to  the  association  as  a  trust  fund  for  the 
benefit  of  firemen  disabled  in  the  city's  service.  These  fire  rates  were 
increased  by  the  Cities  and  "Villages  Act  of  1872,  under  which  Chicago 
organized  in  1875,  by  adding  to  the  2  per  cent  of  the  premiums  of 
the  foreign  companies,  2  per  cent  of  their  net  receipts.  However, 
Chicago  resumed  the  administration  of  firemen's  relief  by  establishing 
a  relief  fund  for  policemen  and  firemen  under  the  act  of  1874  (R.  S. 
1874,  Chap.  24,  Sees.  221-226),  and  the  provision  for  paying  rates  to 
the  Benevolent  Association  was  repealed  by  act  of  1877  (Laws  of 
1877,  p.  62),  if  indeed  it  had  not  already  been  repealed  by  the  estab- 
lishment of  the  city  pension  fund  (Benevolent  Association  v.  Farwell, 
100  111.,  197). 


37 

In  1867,  a  Firemen's  Benevolent  Association  was  also  incorpor- 
ated for  Springfield  with  a  requirement,  like  that  in  the  charter  of 
the  Chicago  association,  for  payment  to  it  of  a  tax  of  2  per  cent  of 
all  premiums  on  insurance  effected  against  loss  by  fire  in  Springfield 
(Private  Laws  of  1867,  Vol.  1,  p.  143). 

Payments  to  Families  of  Volunteers  in  the  Civil  War. 

At  the  time  of  the  Civil  War  numerous  statutes  authorized  or 
ratified  payments  by  specified  counties  for  the  support  of  the  families 
of  volunteers.  (See,  for  example,  Laws  of  1863,  pp.  39,  40,  56; 
Private  Laws  of  1865,  pp.  106,  112,  118,  123). 

General  Pensions  for  Policemen  and  Firemen. 

The  first  general  Illinois  pension  law  was  the  act  of  1874,  men- 
tioned above.  It  authorized  cities  to  establish  funds  for  the  benefit 
of  policemen  and  firemen  disabled  in  discharge  of  duty,  and  for  their 
dependents  if  they  were  killed.  The  act  was  revised  in  1877.  The 
revised  act  established  a  scheme  to  which  later  pension  laws  have  in 
the  main  adhered.  It  provided  that  the  fund,  set  apart  in  the  city 
treasury,  should  be  administered  by  a  pension  board  with  power  to 
determine  finally  the  right  of  an  applicant  to  a  pension  and  to  order 
its  payment;  and  that  the  fund  should  be  maintained  partly  from  a 
small  assessment  levied  on  the  salaries  of  members  of  the  force,  and 
partly  by  the  setting  aside  of  specified  items  of  city  revenue.  These 
were  items  in  which  the  beneficiaries  of  the  fund  were  especially  con- 
cerned, such  as  fines  for  violating  department  rules,  or  the  proceeds 
of  which  their  interested  vigilance  was  perhaps  thought  likely  to  in- 
crease, such  as  fines  for  violating  fire  ordinances,  and  the  proceeds 
of  the  sales  of  stolen  goods.  Where  a  policeman  or  fireman  was 
killed  in  course  of  duty  or  died  after  long  service,  a  pension  was 
granted  to  his  widow  while  unmarried,  or  to  his  children  while  under 
16.  In  1887  the  law  was  again  revised.  The  funds  for  policemen 
and  firemen  in  cities  of  50,000  were  separated  and  put  under  the 
management  of  different  boards.  A  pension  was  granted  for  super- 
annuation. In  1907,  the  firemen's  act  was  extended  to  cities  and 
towns  of  5,000.  In  1909,  a  distinct  law  was  passed  for  police  pension 
funds  in  cities  of  20,000  to  50,000,  and  in  1913  the  law  was  extended 
to  cities  and  towns  of  9,000.  In  1915,  a  separate  statute  regulated 
police  pensions  in  cities  of  200,000.  Pensions  for  policemen  employed 
by  park  commissions  were  established  in  1911. 

Pensions  for  Teachers  and  Employees  in  Public  Schools. 

In  1895,  a  pension  system  was  provided  for  teachers  and  em- 
ployees in  public  schools.  The  law  applied  only  to  cities  of  100,000, 
and  so  was  limited  to  Chicago.  In  1903,  the  employees'  pension  fund 
was  separated  from  the  teachers'  fund,  and  regulated  by  a  different 
and  in  some  respects  more  liberal  law.  In  1907,  the  teachers'  pension 
fund  law  was  revised.  The  revised  law,  speaking  generally,  permits 
retirement  after  25  years  of  teaching  on  a  pension  of  $400,  and,  in  case 
of  disability,  after  15  years  of  teaching  with  a  pension  proportioned  to 
the  time  of  service.  Statutes  of  1911  and  1913  authorized  the  estab- 
lishment of  similar  pensions  in  districts  of  1,000  to  100,000,  and  by 


38 

an  act  of  1915  a  State  pension  fund  was  created  to  be  administered 
substantially  as  is  the  Chicago  fund,  but  by  a  State  board  and  for  the 
benefit  of  teachers  in  all  public  schools  of  the  State  except  in  Chicago 
and  Peoria,  where  the  former  pension  system  remains  in  force.  The 
State  fund  is  supported  by  deductions  from  salaries  and  by  a  one- 
tenth  mill  tax  on  property  in  the  school  districts  affected. 

Pensions  for  Other  Classes  of  Public  Employees. 

In  1905,  a  law  was  passed  for  a  pension  fund  for  waterworks 
employees  in  Chicago,  and  in  the  same  year  an  act  for  a  fund  for 
such  employees  of  Chicago  public  libraries  as  should  choose  to  con- 
tribute to  its  support.  In  1911,  acts  were  passed  for  pension  funds 
for  municipal  employees  under  civil  service,  in  Chicago,  and  for  house 
of  correction  employees ;  and  in  1914,  for  officers  and  employees  of 
counties  having  a  population  exceeding  150,000. 

Provisions  for  Other  Forms  of  Relief. 

Reference  should  also  be  made  to  several  other  statutes  which, 
without  providing  for  the  maintenance  of  a  pension  fund,  do  never- 
theless provide  for  the  payment  of  public  money  by  way  of  relief 
because  of  service  in  public  employment  when,  except  for  the  statutes, 
.there  would  often  be  no  liability ;  namely,  the  act  for  relief  to  indigent 
soldiers  and  sailors  (Laws  of  1895,  p.  83),  the  Military  Code  (Laws^ 
of  1901,  p.  143),  and  the  Workmen's  Compensation  Act  (Laws  of* 
1913,  p.  337).  The  act  for  pensioning  fire  insurance  patrolmen  (R.  S., 
Chap.  24,  Sees.  423-434)  should  also  be  mentioned,  as,  though  the 
patrolmen  are  not  engaged  in  public  employment,  nor  are  their  pen- 
sions paid  out  of  public  money,  the  pensions  are  regulated  and  the 
fund  is  maintained  by  assessments  made  by  authority  of  the  statute. 


Tables  designed  to  show  in  detail  the  history  of  pension  legisla- 
tion in  Illinois,  including  the  acts  last  referred  to,  are  given  in  Ap- 
pendix "A." 

The  acts  for  relief  of  the  poor  (R.  S.,  Chap.  107),  of  the  blind 
(R.  S.,  Chap.  23,  Sees.  245-253)  and  of  mothers  (R.  S.,  Chap.  23, 
Sees.  289-316)  are  not  included,  as  it  is  conceived  they  are  not  properly 
pension  laws,  since  the  right  to  relief  is  not  based  on  service. 

SOURCES  OF  REVENUE. 

It  will  be  observed  from  the  above  mentioned  tables  that  there 
appears  a  tendency  to  increase  slightly  from  time  to  time  the  percentage 
of  salary  to  be  contributed  by  the  beneficiaries.  But  much  more  strik- 
ing are  the  successive  increases  made  in  the  amounts  drawn  from  other 
sources.  The  act  of  1874  establishing  a  joint  fund  for  policemen  and 
firemen  was  amended  in  1875,  1877,  1879,  1883  and  1901,  and  each  time 
a  new  source  of  revenue  was  added.  The  firemen's  fund  established 
under  the  act  of  1887  received  accessions  of  revenue  from  new  sources, 
or  by  increase  of  amounts  to  be  set  aside  from  old  sources,  in  1889, 
3901,  1905,  1907  and  1915;  the  police  fund  of  1887,  in  1903  and  1911  ; 
the  school  employees'  fund  of  1895,  in  1907  and  1913 ;  the  municipal 


39 

employees'  fund  of  1911,  in  1915;  and  the  houses  of  correction  em- 
ployees' fund  of  1911,  in  1915.  The  Legislature  of  1915,  in  revising 
the  law  for  pensions  for  firemen  and  park  policemen,  and  in  establish- 
ing new  pension  funds  for  Chicago  policemen  and  for  school  teachers, 
made  a  new  departure  in  authorizing  local  general  property  taxes,  not 
to  exceed  specified  rates  which  vary  from  one-twenty-fifth  to  seven- 
tenths  of  a  mill  on  the  dollar,  as  one  source  of  revenue  for  the  funds. 

REFUNDS. 

Most  of  the  pension  laws  provide  for  a  return  of  all  or  part  of 
the  contributions  made  to  the  fund  by  an  employee  who  resigns  or 
whose  position  is  abolished  before  he  becomes  entitled  to  a  pension. 
But  there  is  no  provision  for  a  return  to  policemen  or  firemen.  Pen- 
sions for  these  two  groups  were  the  first  to  be  established,  and  per- 
haps the  matter  was  not  then  thought  of.  But  even  in  recent  provi- 
sions and  extensions  of  policemen's  and  firemen's  pensions  there  is 
no  provision  for  refunding  contributions. 

AGE  AND  PERIOD  OF  SERVICE. 

The  first  laws  to  provide  for  retirement  on  pension  after  a  stated 
period  of  service  were  the  acts  of  1887  for  policemen  and  firemen  in 
cities  of  50,000.  The  period  of  service  for  policemen  was  20  years, 
and  this  with  few  exceptions  has  been  the  period  fixed  under  other 
pension  funds.  For  teachers,  however,  the  time  is  25  years.  The 
time  for  firemen  was  25  years  at  first,  but  was  reduced  to  22  years  in 
1889,  and  to  20  years  in  1913. 

It  was  a  condition  in  the  acts  of  1887  that  the  retiring  pensioner 
must  be  50  years  old.  Whether  age  as  well  as  length  of  service  should 
be  a  condition  for  retirement  involves  a  question  of  public  policy, 
and  its  answer,  moreover,  must  considerably  affect  the  demands  on  the 
pension  fund.  Yet  it  is  hard  to  detect  in  the  statutes  any  indication  of 
a  policy  upon  the  point. 

In  1895,  a  pension  law  for  teachers  and  employees  of  Chicago 
public  schools  permitted  retirement  after  20  or  25  years  of  service 
without  regard  to  age.  In  1903,  the  public  school  employees  were 
given,  in  addition,  a  right  to  retire  at  55  after  only  10  years  of  service. 
In  1905,  acts  for  waterworks  employees  of  Chicago  and  for  fire  insur- 
ance patrolmen  gave  a  right  to  retire  after  20  years  of  service  to  per- 
sons aged  only  50.  But  the  Chicago  public  libraries  act  of  the  same 
year  followed  the  plan  of  the  act  for  public  school  employees  and 
allowed  retirement  after  20  years  of  service  without  regard  to  age, 
or  after  10  years  of  service  at  55.  In  1907,  the  age  limit  as  to  firemen 
was  struck  out  even  as  to  cities  and  towns  of  5,000  to  50,000,  to  which 
in  that  year  firemen's  pensions  were  extended.  Yet  in  1909,  in  extend- 
ing policemen's  pensions  to  cities  of  20,000  to  50,000,  the  age  limit  of 
50  was  preserved  and  still  exists;  though  in  1911,  it  was  struck  out 
as^  to  cities  of  over  50,000.  The  park  policemen's  act  of  1911  con- 
tained no  age  limit,  but  in  the  act  of  the  same  year  for  employees  of 
houses  of  Correction  there  was  an  age  limit  of  50,  and  the  1911  law 
for  municipal  employees  placed  the  age,  with  some  qualifications,  at 


40 

55.  In  1915,  the  houses  of  correction  act  was  amended  by  striking 
out  the  age  limit  of  50,  and  the  park  policemen's  act  amended  by 
inserting  an  age  limit  of  50.  The  teachers'  pension  act  of  that  year, 
applying  outside  of  Chicago  and  Peoria,  limited  the  right  to  retire  to 
teachers  50  years  old;  but  no  such  condition  was  imposed  as  to  Chi- 
cago or  Peoria  teachers.  The  county  employees'  act  of  1915  fixed, 
with  qualifications,  the  age  for  retirement  at  55. 

The  present  situation,  therefore,  is  that  one  may  retire  on  a 
pension  as  soon  as  he  has  completed  a  fixed  term  of  service,  though 
under  50,  if  he  is  a  fireman,  but  not  if  he  is  a  fire  insurance  patrol- 
man ;  if  he  is  a  policeman  in  a  city  of  50,000,  but  not  if  he  is  a  police- 
man in  a  city  of  less  than  50,000  or  a  park  policeman ;  if  he  is  a  teacher 
in  Chicago  or  Peoria,  but  not  if  he  is  a  teacher  in  any  other  city;  or 
if  he  is  employed  by  Chicago  in  a  school,  library  or  house  of  correc- 
tion, but  not  if  otherwise  employed  by  the  city,  or  if  employed  by 
Cook  County. 

PENSIONS  TO  SURVIVORS. 

Liberal  pensions  have  been  provided  for  widows  and  children  of 
firemen,  policemen  and  employees  of  houses  of  correction ;  slighter 
relief  (not  over  one  year's  benefit)  for  widows  and  children  of  public 
school  and  library  employees;  and  none  at  all  for  widows  or  children 
of  teachers  or,  .under  present  laws,  of  municipal  and  county  employees. 
This  difference  of  treatment  is  continued  through  the  most  recent 
enactments.  In  1915,  allowances  to  surviving  dependents  were  con- 
tinued, and  in  some  instances  increased,  in  case  of  firemen,  Chicago 
policemen,  park  policemen  and  employees  of  houses  of  correction; 
while  laws  which  contained  no  such  allowances  were  passed  concern- 
ing pensions  for  teachers  and  municipal  and  county  employees.  Sec- 
tion 5  of  the  Workmen's  Compensation  Act  excludes  from  its  benefits 
employees  of  a  municipality  to  whom  or  to  whose  representatives  a 
pension  is  payable  in  case  of  accidental  injury  or  death;  and  if  Chi- 
cago elects  to  come  under  the  act,  it  would  seem  that  the  fact  that 
the  widow  of  a  Chicago  public  school  or  library  employee  is  entitled 
under  the  pension  law  to  a  sum  equal  to  one  year's  retiring  allowance 
will  exclude  her  from  the  compensation  equal  to  four  years'  full  earn- 
ings which  she  might  receive  under  the  workmen's  act,  if  the  pension 
law  were  not  in  existence.  Moreover,  it  is  perhaps  questionable 
whether  school  teachers  and  municipal  and  county  employees  who 
have  served  long  enough  to  be  entitled  to  retire  on  a  pension  for  dis- 
ability caused  by  accident  are  not  thereby  put  outside  the  scope  of  the 
Workmen's  Compensation  Act  altogether,  so  that  in  case  of  death  by 
accident  their  dependents  would  be  wholly  without  relief. 

Where  pensions  are  provided  for  survivors,  the  conditions  on 
which  they  are  granted  vary  considerably.  Under  the  act  of  1871 
for  policemen  and  firemen,  pensions  were  limited  to  cases  of  death 
from  injury  received  in  discharge  of  duty.  But  in  the  revision  of  1877, 
provision  was  also  made  for  survivors  when  the  policeman  or  fireman 
died  in  service  after  ten  years  of  service,  whatever  the  cause  of  death. 
There  is  still  no  pension  for  survivors  of  a  policeman  who  has  served 
less  than  ten  years  unless  death  is  traceable  to  service. 


41 

On  the  other  hand,  pensions  to  survivors  on  death  in  service, 
however  short  the  service  has  been" and  whatever  the  cause  of  death, 
were  provided  in  the  revision  of  the  public  school  employees'  act  in 
1903 ;  in  the  establishment  of  the  public  library  and  houses  of  correc- 
tion pension  systems  in  1905  and  1911 ;  and  in  the  revision  of  the 
firemen's  pension  law  in  1915.  The  water  works  employees'  act  of 
1905  allowed  a  pension  on  death  after  three  years  of  service. 

As  to  death  after  retirement  on  pension,  the  act  of  1887  made 
provision  for  survivors  in  every  case  where  a  pensioned  fireman  died, 
but  not  until  1899  were  pensions  given  to  survivors  of  policemen  pen- 
sioned after  twenty  years  of  service,  and  not  until  1913  to  survivors  of 
policemen  pensioned  for  disability,  and  then  only  in  cities  of  50,000  or 
more  population. 

The  houses  of  correction  law  gives  substantial  pensions  to  sur- 
vivors in  case  of  death  in  service  or  in  retirement  on  pension.  The 
school  employees'  and  library  employees'  laws  provide  relief  for  sur- 
vivors in  case  of  death  in  service  but  not  in  case  of  death  in  retirement. 
It  has  already  been  remarked  that  survivors  of  school  teachers  or  of 
municipal  or  county  employees  are  not  provided  for  at  all. 


CHAPTER  IV- 


SURVEY    OF   PENSION    LAWS   IN    FORCE   IN    ILLINOIS 
JANUARY     1,      1916,     FOR     PUBLIC      SERVICE     EM- 
PLOYEES*   AND    COMPARATIVE    REFERENCES 
TO     PROVISIONS     IN     PENSION     LAWS     IN 
OTHER  STATES  FOR  SUCH  EMPLOYEES. 

The  Historical  Sketch  of  the  Laws  of  Illinois,  as  given  in 
chapter  III,  page  36,  together  with  the  Tabular  Digest  of  Appendix 
"A,"  reveals  the  fact  that  beginning  with  the  year  1852  a  large 
number  and  variety  of  pension  laws  have  been  placed  on  the 
statute  books  of  this  State.  Some  of  these  laws  have  been  revised,  in 
some  instances  a  number  of  times;  others  have  become  dead-letters; 
one  has  not  been  put  in  force  at  date  of  this  writing ;  and  others  are  still 
effective  in  full.  The  result  of  this  legislation  has  been  that  on  Jan- 
uary 1,  1916,  there  were  in  force,  or  likely  to  become  in  force,  eighteen 
laws,  exclusive  of  the  law  for  the  relief  of  mothers  and  the  one  for 
the  relief  of  the  blind,  which  are  sometimes  popularly  referred  to  as 
pension  laws.  Of  these  eighteen,  seventeen  were  either  by  way  of 
payment  of  public  money  for  public  service  rendered,  or  of  creating 
and  regulating,  liability  for  injuries  received  in  discharge  of  duty,  and 
one  was  for  regulating  pensions  and  maintaining  funds  by  assess- 
ments in  the  case  of  a  private  concern. 

Of  these  the  Military  Code  (Laws  of  1901,  p.  143)  and  the 
Workmen's  Compensation  Act  (Laws  of  1913,  p.  337)  are  really  not 
pension  laws,  inasmuch  as  their  prime  object  is  the  determination  and 
regulation  of  liability  in  the  event  of  injury,  while  the  act  for  the 
relief  of  army  and  navy  veterans  (Laws  of  1895,  p.  83)  merely  creates 
machinery  for  providing  relief  to  such  persons  in  indigent  circumstan- 
ces different  from  that  created  in  the  cases  of  other  persons  in  need. 

The  elimination  of  these  three  leaves  fifteen  laws  on  the  statute 
books  on  January  1,  1916,  and  to  these  the  Tabular  Digest  of  Appendix 
"B"  refers. 

Among  these  fifteen  laws,  three  deserve  special  mention: 

The  Park  Police  Act  of  1915  requires,  to  be  in  effect  for  any 
particular  park,  the  consent,  to  such  act,  of  the  board  of  park  com- 
missioners for  such  park,  expressed  by  resolution  or  otherwise,  and 
recorded  in  the  office  of  the  recorder  of  deeds  of  the  county  in  which 
the  park  is  situated.  Such  consent  was  not  recorded  in  the  case  of  any 
park  on  January  1,  1916.  This  act  was,  therefore,  not  in  effect  on 
that  date,  and  indeed  was  not  in  effect  on  December  1,  1916. 

*  Illinois  laws  included  in  this  survey  are  summarized  in  the  tabular  digest 
comprising   Appendix    "B." 


43 

The  County  Employees'  Act  was  declared  invalid  in  the  Superior 
Court  of  Cook  County  on  August  2,  1916,  and  the  amounts  paid  into 
the  funds  were  ordered  returned  to  the  contributors. 

The  Fire  Insurance  Patrolmen's  Act  does  not  involve  the  ex- 
penditure of  public  money.  It  is  given  in  the  Tabular  Digest  for  the 
sake  of  completeness  and  also  to  call  attention  especially  to  the  fact 
that  this  is  the  only  act  on  the  statute  books  of  this  State  regulating 
the  payment  of  pensions  in  private,  as  distinguished  from  public, 
institutions. 

The  object  of  this  chapter  is  to  take  a  brief  survey  of  the  pro 
visions  of  these  laws,  with  references  to  provisions  in  the  laws  of 
other   states   regulating  payment   of   pensions   to   public   service   em- 
ployees. 

The  references  to  the  laws  of  other  states  are  taken  from  Ap- 
pendix "B"  of  the  Report  of  the  Commission  on  Pensions  for  the 
Commonwealth  of  Massachusetts,  published  in  1914,  entitled  "Digest 
of  Pension  Legislation  relating  to  State,  County  and  Municipal  Em- 
ployees of  all  States  in  the  United  States,"  and  an  extension  of  this 
report  brought  down  to  August  1,  1916,  by  the  Legislative  Reference 
Bureau  of  Illinois. 

From  these  sources  we  find  that  the  following  pension  legislation 
has  been  enacted  in  the  different  states  of  the  United  States : 


State  and  city. 


Legislation. 


Beneficiaries. 


Alabama. 


Arizona. 


Arkansas. 
California. 


Oakland. 

Colorado. 
Denver. 


Connecticut. 

Bridgeport. 
New  Haven. 


New  London. 
Delaware. 
Wilmington. 


Gen.  Laws  of  1911,  No.  254,  Sec.  18%.  Applies  to 
cities  of  25,000  to  50,000. 

Acts  of  1911,  No.  431.  Applies  to  all  cities  over 
25,000. 

Acts  of  1911,  No.  254.  Applies  to  all  cities  of 
25,000  to  50,000. 

Acts  of  1911,  No.  431.  Applies  to  all  cities  over 
25,000. 

Acts  of  1915.  Applies  to  counties  having  a  popu- 
lation of  80,000  and  not  exceeding  82,000. 

Session  Laws,  1912.     Applies  to  entire  state. 

Acts  of  1915. 

No  legislation. 

Acts  of  1901,  Ch.  87,  amended  by  Acts  of  1903, 
Ch.  143.  Applies  to  entire  state. 

Acts  of  1897,  Ch.  57,  amending  Acts  of  1889,  Ch. 
62,  as  further  amended  by  Acts  of  1891,  Chs. 
210,  248.  Applies  to  entire  state. 

Acts   of    1913,    Ch.    694. 

City  Charter  of  1910. 

City  Charter  of  1910. 

Acts  of  1909,  Ch.  214.     Applies  to  Denver. 

Acts  of  1903,  Ch.  172,  and  City  Charter  of  1904. 
Act  applies  to  cities  of  over  100,000. 

Acts  of  1913,  Ch.  120.  Applies  to  cities  of  over 
100,000. 

Acts  of  1893,  Ch.  115.  Applies  to  all  cities  hav- 
ing police  department  under  police  commis- 
sion, which  shall  accept  it. 

City  Charter  of  1907. 

Special  Acts  of   1907,  revising  City  Charter. 

Acts  of  1894. 

-Vets  of  1894. 

Acts  of  1911,  Special  Act  amending  charter. 

Acts  of  1911,  No.    461. 

No   state-wide   legislation. 

Acts  of  1907,  Ch.   185,  and  amendments. 

Acts  of  1911,  Ch.  208,  amending  Acts  of  1913, 
Ch.  210. 


Firemen. 

Firemen. 

Policemen, 

Policemen. 

Teachers. 

Teachers. 
Firemen. 

Firemen. 
Policemen. 

Teachers. 

Firemen. 

Policemen. 

Teachers. 

Firemen. 

Policemen. 
Policemen. 


Firemen. 

Policemen. 

Firemen. 

Policemen. 

Teachers. 

Teachers. 

Policemen. 
Teachers. 


—4  PL 


44 


State  and  city. 


Legislation. 


Beneficiaries. 


Florida. 
Georgia. 
Atlanta. 


Idaho. 

Illinois. 

Indiana. 


Indianapolis. 

Terre  Haute. 
Iowa. 

Kansas. 

Kentucky. 
Louisville. 


Louisiana. 

New  Orleans. 


Maine. 

Portland. 
Maryland. 


Baltimore. 
Massachusetts. 


No  legislation. 

No  state-wide  legislation. 

Acts  of  1910,  amending  City  Charter,  and  Amend- 
ment of  1912. 

Laws  of   1910,   amending  City  Charter. 

Acts   of   1912,   amending   City   Charter. 

No  legislation. 

See  Appendix  A,  p.  ,  and  Appendix  B,  p. — 

Acts  of  1905,  Ch.  129,  as  amended  by  Acts  of 
1913,  Ch.  52.  Applies  to  all  first-  and  second- 
class  cities,  and  all  third-  fourth-  and  fifth- 
class  cities  which  accept  it. 

Acts  of  1913,  Ch.  334.  Applies  to  cities  of  20,000 
to  100,000. 

Acts   of   1815. 

Acts  of  1908  as  amended  by  Acts  of  1913,  Ch 
128.  Applies  to  cities  of  first  and  second  class 
and  to  all  other  cities  which  accept  it. 

Acts  of  1907.     Applies  to  cities  of  100,000  or  over. 

Acts  of  1913,  Ch.  77.  Applies  to  cities  of  55,000 
to  60,000. 

Laws  of  34th  G.  A.,  Ch.  61,  and  subsequent 
amendments.  Mandatory  on  cities  having 
paid  department ;  permissive  on  cities  having 
an  organized  department. 

Laws  of  34th  G.  A.,  Ch.  51,  amending  Laws  of 
33d  G.  A.,  Ch.  62.  Applies  to  entire  state. 

Acts  of  1911,  Ch.  280.  Applies  to  cities  of  the 
first  class. 

Acts  of  1915. 

Acts  of  1915. 

Acts  of  1912,  Ch.  129.  Applies  to  all  first-class 
cities. 

Acts  of  1912,  Ch.  122.  Mandatory  on  all  first- 
class  cities. 

Acts  of  1912,  Ch.  112.  Applies  to  all  first-class 
cities. 

Acts  of  1914. 

Acts  of  1910,  Ch.  277.  Applies  to  Supreme  Court 
judges. 

Acts  of  1888,  No.   63. 

Acts  of  1910,  Act  No.  116.  Applies  to  Parish  of 
Orleans. 

Acts  of  1912,  Act  No.  152,  amending  Acts  of  1902, 
Act  No.  43. 

Acts  of  1911,  Ch.  198,  amending  Acts  of  1909, 
Ch.  132.  Applies  to  Supreme  Court  and  Su- 
perior Court  judges. 

Acts  of  1913,  Ch.  75.    Applies  to  entire  state. 

Acts  of  1906. 

Special   Acts'  of   1909,   Ch.    356. 

Acts  of  1904,  Ch.  236.  Applies  to  judges  of  Cir- 
cuit Court,  Supreme  Court  of  Baltimore  and 
Court  of  Appeals. 

Acts  of  1912,  Ch.  135.    Applies  to  entire  state. 

Acts  of  1912,  Ch.  463.     Applies  to  Alleghany  Co. 

Acts  of  1915.  Gives  board  power  to  waive  age 
limit  where  it  thinks  proper. 

Acts  of  1886,  Ch.  459,  and  amendments. 

City  Charter  of  1900,  Sects.  70  and  445. 

Acts  of   1912. 

Relief  Fund.  Acts  of  1890,  Ch.  450,  amended  by 
Acts  of  1902,  Ch.  108,  and  Acts  of  1906,  Ch. 
171.  Applies  to  whole  state. 

Acts  of  1898,  Ch.  267,  and  subsequent  laws. 
Applies  to  all  cities  and  towns  except  those 
having  pension  systems  under  special  Acts. 

R.  L.  of  1902,  Ch.  108,  Sects.  29-30,  with  amend- 

•  ments.  Applies  to  cities  of  over  75,000  inhabit- 
ants except  Boston. 

R.  L.  of  1902,  Ch.  108,  Sect.  31,  with  amendments. 
Applies  to  all  cities  and  towns  not  having  pen- 
sion systems,  upon  acceptance. 

Acts  of  1908,  Ch.  498.  Applies  to  all  cities  and 
towns  accepting  act,  except  Boston. 

Acts  of  1913,  Ch.  832.  Applies  to  entire  state, 
except  Boston. 


Firemen. 

Policemen. 
Teachers. 


Firemen. 


Teachers. 

Teachers. 
Policemen. 


Teachers. 
Teachers. 

Firemen. 


Policemen. 
Teachers. 

Firemen. 

Policemen. 

Teachers. 

Firemen. 
Policemen. 

Teachers. 
Judges. 

Policemen, 
Teachers. 

Firemen. 
Judges. 


Teachers. 
Policemen. 
Firemen. 
Judges. 


Teachers. 
Teachers. 
Teachers. 

Policemen. 
Firemen. 
Teachers. 
Firemen. 


Firemen. 

Policemen. 

Policemen. 

Teachers. 
Teachers. 


45 


State  and  city. 

Legislation. 

Beneficiaries. 

Acts  of  1885,  Ch.  162  and  subsequent  Acts.     Ap- 

Judges. 

plies  to  all  judges. 

Acts  of  1909,  Ch.  453,  amended  by  Acts  of  1913, 

Metropoll- 

Ch.    545. 

tan    park    po- 

licemen. 

Acts  of  1911,  Ch.   675. 

District     police- 

men. 

Acts  of  1911,  Ch.  532,  and  subsequent  Acts.     Ap- 

All  public   serv- 

plies   to    all    employees    of    Commonwealth    ex- 

ice   employees 

cepting  those  entering  service  after  55  years  of 

of  state. 

age  who  are  prohibited  from  remaining  in  ser- 

vice after  reaching  age  of  70  years. 

Acts  of  1911,  Ch.   634,  and  subsequent  Acts.     Ap- 

All  public  serv- 

plies to  counties  accepting  it. 

ice  county  em- 

ployees. 

Acts  of  1910,  Ch.  619,  and  amending  Acts  of  1911, 

All  public  serv- 

Ch.  338.     Applies  to  all  cities  and  towns  after 

ice    employees 

acceptance,  except  Boston. 

of    cities    and 

towns. 

Acts   of   1912,    Ch.    503,   as   amended   by   Acts   of 

All   public  serv- 

1913, Ch.   671.     Applies  to  all  cities  and  towns, 

ice    employees 

except  Boston,  accepting  it. 

of    cities    and 

towns. 

Acts  of  1907,  Ch.  458. 

Civil    War    vet- 

e  r  a  n  s,     em- 

ployees    of 

state. 

Acts  of  1912,  Ch.  447. 

Civil    War    vet- 

erans,    em- 

ployees    of 

cities    and 

towns. 

Acts  of  1909,  Ch.  398. 

Civil    War    vet- 

e  r  a  n  s,     em- 

ployees    of 

counties. 

Acts    of    1908,    Ch.    601,    and    amendments.      Ap- 

Prison officers. 

plicable   to   prison   officers   and   instructors   who 

began  employment  previous  to  June  7,  1911. 

Boston. 

Acts  of  1878,  Ch.   244,  and  amendments. 

Policemen. 

Acts  of  1880,  Ch.  107,  and  subsequent  Acts. 

Firemen. 

Acts  of  1900,  Ch.  237,  and  amendments. 

Teachers. 

Acts  of  1911,  Ch.  413,  and  amendments. 

Public  service 

employees    o  t 

Boston. 

Acts  of  1911,  Ch.  113,  and  amendments. 

Civil   War   vet- 

e  r  a  n  s,      em- 

ployees    of 

Boston. 

Michigan. 

Public  Laws  of  1913,  p.   787.     This  is  a  concur- 
rent resolution  proposing  an  amendment  to  Sec. 

Firemen. 

14   of  Art.   10   of  the  Constitution  of  the  state 

relative  to  pensioning  firemen. 

Act  of  1915. 

Teachers. 

Detroit. 

Local  Acts  of  1885,  No.  386. 

Firemen. 

Acts  of  1893. 

Policemen. 

Acts  of  1907,  amending  charter. 

Teachers. 

Grand  Rapids. 

Local  Acts  of  1891,  No.  309. 

Firemen. 

Minnesota. 

Acts  of  1911,  Ch.  383.     Applies  to  cities  of  10,000 

Teachers. 

or  over. 

Acts  of  1913,  Ch.  318,  amending  Acts  of  1907,  Ch. 

Firemen. 

24.     Applies  to  cities  of  50,000  or  over. 

Acts  of  1913,  Ch.  290,  amending  Acts  of  1903,  Ch. 

Policemen. 

159. 

Acts  of  1913,  Ch.   269.     Applies  to  Supreme  and 
District  Court  Judges. 

Judges. 

Acts  of  1915. 

Policemen. 

St.  Paul 

Acts  of  1892. 

Firemen. 

Acts   of   1903,    Ch.    159,   with    amendments.      Ap- 

Policemen. 

plies  to  cities  of  over  50,000. 

Minneapolis. 

Acts    of    1892. 
Acts    of    1903,    Ch.    159,    with    amendments.      Ap- 

Firemen. 
Policemen. 

plies  to  cities  of  over  50,000. 

Duluth. 

Under  authority  of  "10,000  Population"  Act. 
Under  authority  of  "10,000  Population"  Act. 

Teacners. 
Teachers. 

Mississippi. 

No  legislation. 

'  t 

46 


State  and  city. 


Legislation. 


Beneficiaries. 


Missouri. 
St.  Louis. 


Montana. 
Nebraska. 


Omaha. 


Nevada. 

New  Hampshire. 


New  Jersey. 


Jersey  City. 

Elizabeth. 

Newark. 
New  Mexico. 
New  York. 


New    York 
City. 


No  state-wide  legislation. 

R.  S.  of  1899,  Sect  6411. 

Private  Teachers'  Association. 

Act  of  1915. 

Comp.   Stats,   of   1911,   Sects.    3555-3559.     Applies 

to  all  first-class  cities  of  less  than  25,000,  and 

second-class   cities   having   organized   volunteer 

companies. 
Comp.  Stats,  of  1911,  Sects.  3561-3562.  Applies 

to  all  metropolitan  and  first-class  cities. 
R.  L.   of  1913,  Art.   6,   Sects.   3991-3999.     Applies 

to  all  metropolitan  cities. 
Acts  of  1913,  Ch.   152.     Applies  to  public  library 

employees  in  first-class  cities. 

Acts  of  1915.     Applies  to  cities  of  first  class  hav- 
ing less  than  25,000,  or  any  city  of  the  second 

class. 

Act  of  1915,  amending  former  Act. 
Acts  of  1909. 
Acts  of  1909,  Ch.  132.    Applies  to  all  metropolitan 

cities. 

No  legislation. 
Acts    of    1907,    Ch.    85,    Sect.    1,    and    subsequent 

amendments,    on    acceptance    by    town    or    city. 

Applies  to  any  town  or  city. 
Acts  of  1907,  Ch.  85,  and  subsequent  amendments. 

Applies  to  entire  state. 
Acts  of   1915. 
Acts  of  1885,  Ch.  148,  and  amendments.     Applies 

to  all  cities. 
Acts  of  1885,  Ch.  250,  and  amendments.     Applies 

to  all  cities  accepting  provisions. 
Public    Laws    of    1902,    Ch.    270,    and    subsequent 

amendments.     Applies  to  all  first  class  cities 

accepting  Act. 

Acts  of  1903,  and  amendments. 
Public    Laws    of    1905,    Ch.    65,    and    subsequent 

amendments.       Applies     to     all     municipalities 

other    than    those    of    the    first    class,    having 

paid  fire  departments. 
Acts  of  1908,  Ch.   74. 
Acts  of  1908,  Ch.   313,  amended  by  Acts  of  1911, 

Ch.    185.      Applies    to    chancellor,    chief   justice 

and  associate  justices  of  Supreme  Court. 
Acts    of    1910,    Ch.    48,    amending    Acts    of    1895, 

Ch.  91.     Applies  to  park  police. 
Acts   of   1912,    Ch.    373,    amending   Laws   of   1911, 

Ch.  72.     Applies  to  all  cities  other  than  first 

class. 

Acts  of  1913,  Ch.  215.     Applies  to  all  cities  hav- 
ing health  boards,  if  adopted  by  two-thirds  of 

employees. 
Act  of  1916. 
Laws  of  1902,  Ch.  270,  amended  by  Laws  of  1908, 

Ch.  142,  and  Laws  of  1912,  Ch.  240. 
Acts  of  1907. 
Acts  of  1902. 
No    legislation. 
Laws  of  1909,  Ch.  29.     Applies  to  volunteer  fire- 
men. 
Acts  of  1885,  Ch.  486,  and  amendments.     Applies 

to  cities  of  over  1,000,000  inhabitants. 
Acts   of   1911,   Ch.    449.      Applies   to   entire   state 
Acts  of  1913,  Ch.   138.     First  district. 


Acts  of  1913,  Ch.  185.     Second  and  ninth  districts 

Laws  of  1901,  Ch.  466,  and  amendments. 

Acts  of  1857,  Ch.  569,  and  subsequent  acts. 
Acts  of  1909,  Ch.   505,  and  reenactments. 
Acts  of  1901,  Ch.   466,  and  amendments. 
Acts  of  1901,  Ch.   466,  and  amendments. 


Firemen. 
Teachers. 
Teachers. 
Firemen. 


Firemen. 
Policemen. 


Public  library 

employees. 
Firemen. 


Policemen. 
Policemen. 
Teachers. 


Firemen. 


Policemen. 


Teachers. 
Policemen. 


Policemen. 
Firemen. 


Teachers. 
Firemen. 


Policemen. 
Judges. 


Park   policemen. 
Policemen. 


Health    Board 
employees. 

Policemen. 
Firemen. 

Policemen. 
Policemen. 

Firemen. 
Policemen. 

Teachers. 
Employees 

of  Supreme 

Court. 
Employees 

of  Supreme 

Court. 
Firemen. 

Policemen. 
Teachers. 
Street   cleaners. 
Employees 

of     Board     of 

Health. 


47 


State  and  city. 


Legislation. 


Beneficiaries. 


Syracuse. 

Yonkers. 

Rochester. 

Buffalo. 

North  Carolina. 
North  Dakota. 

Ohio. 


Dayton. 
Cleveland. 
Cincinnati. 
Columbus. 
Springfield. 
Oklahoma. 

Oregon. 


Pennsylvania. 


Philadelphia. 


Pittsburg. 
Rhode  Island. 


Pawtucket. 
Providence. 


South  Carolina. 
Charleston. 

South  Dakota. 
Tennessee. 
Chattanooga. 

Texas. 
Utah. 


Acts  of  1911,  Ch.  669,  and  Acts  of  1912,  Ch.  47y. 
Applicable  to  employees  not  eligible  under  other 
systems. 

Laws  of  1905,  Ch.  683,  and  amendments. 

Laws  of  1908,  Ch.   452. 

Acts  of  1907,  Ch.  755. 

City  Charter  of  1907,  and  amendments. 

City  Charter  of  1907,  and  amendments. 

No  legislation. 

Acts  of  1910.  Ch.  123.     Applies  to  entire  state. 

Acts  of  1913,  Ch.  251. 

General  Code  of  1910,  Sects.  4600-4615.  Applies 
to  all  cities  and  towns  having  a  fire  department 
supported  in  whole  or  in  part  at  public  expense. 

General  Code  of  1910,  Sects.  4616-4631.  Applies 
to  all  cities  and  towns  having  departments  sup- 
ported in  whole  or  in  part  at  public  expense. 

General  Code  of  1910,  Sects.  4632-4647.  Applies 
to  all  cities  and  towns  having:  sanitary  police 
departments  supported  in  whole  or  in  part  at 
public  expense. 

Acts  of  1911,  S.  B.  142,  amending  Sects.  7877-7878- 
7891  of  General  Code.  Applies  to  entire  state. 

Act  of  1915,  amending  previous  Act. 

Act  of  1915,  amending  previous  Act. 

General  Code  of  1910,  H.  B.  No.  934. 

General  Code  of  1910. 

Acts  of  1892. 

Acts  of  1903. 

Acts  of  1904. 

Laws  of  1913,  Ch.  244.  Applies  to  all  incorpo- 
rated cities  and  towns. 

Acts  of  1913,  Ch.  287.  Applies  to  all  cities  over 
50,000. 

Acts  of  1913,  Ch.  58,  amending  Acts  of  1911,  Ch. 
280.  Applies  to  all  districts  having  more  than 
10,000  children  of  school  age. 

Acts  of  1893,  No.  82. 

Acts  of  1913,  No.  849,  amending  Acts  of  1901, 
No.  14.  Applies  to  cities  of  second  class. 

Acts  of  1913,  No.  849,  amending  Acts  of  1901, 
No.  14.  Applies  to  second-class  cities. 

Penn.  School  Code  of  1911. 

Acts  of  1913,  No.  461.  Applies  to  all  first-class 
cities. 

Laws  of  1913,  No.  38.  Applies  to  all  second-class 
cities. 

Act  of  1915.  Applies  to  counties  having  a  population 
of  less  than  1,500,000  and  more  than  1,000,000. 

Acts  of  1874. 

Acts  of  1891. 

Penn.  School  Code  of  1911. 

Acts  of  1893. 

General  Laws  of  1909,  Ch.  274.  Applies  to  Su- 
preme and  Superior  Court  judges. 

General  Laws  of  1909,  p.  1350. 

School  Laws  of  1910,  pp.  27  and  94. 

Act  of  1915,  amending  previous  Acts. 

Act  of  1916,  authorizing  City  of  Providence  to 
establish  a  retirement  board  with  power  to  pre- 
scribe what  class  of  employees  may  be  retired. 

Public  Laws  of  1913,  Ch.   1007. 

Acts  of  1896,  Ch.  372,  and  Acts  of  1913,  Ch.  977. 

Acts  of  1897,  Ch.  485. 

Acts  of  1901,  Ch.  930,  as  amended  by  Acts  of 
1911,  Ch.  734  and  Ch.  976. 

Acts  of  1898  and  1902. 

City  Ordinance  of  1902. 

City   Ordinance   of  1904,   and   amendments. 

No  legislation. 

No  state-wide  legislation. 

Acts  of  1909,  Ch.  408,  as  amended  by  Acts  of 
1911,  Ch.  2. 

Acts  of  1907. 

Acts  of  1911,  Ch.  146.  Applies  to  all  cities  and 
towns  having  equipment  of  over  $500. 

Laws  of  1913,  Ch.  91. 


Public  service 
employees. 

Firemen. 

Firemen. 

Policemen. 

Teachers. 

Teachers. 

Firemen. 
Teachers. 
Firemen. 


Policemen. 
Policemen. 

Teachers. 

Firemen. 

Policemen. 

Firemen. 

Firemen. 

Policemen. 

Policemen. 

Policemen. 

Firemen. 

Policemen. 
Teachers. 


Policemen. 
Firemen. 

Policemen. 

Teachers. 

Municipal 
employees. 

Municipal 
employees. 

County  employ- 
ees. 

Firemen. 

Policemen. 

Teachers. 

Policemen. 

Judges. 

Firemen. 
Teachers. 
Teachers. 
Various. 


Firemen. 
Firemen. 
Teachers. 
Policemen. 

Teachers. 

Policemen. 

Firemen. 


Firemen. 


Firemen. 
Firemen. 


Teachers. 


48 


State  and  city. 

Legislation. 

Beneficiaries. 

Vermont. 

Acts  of  1912,   No.   70. 

Teachers. 

Act  of  1915. 

Teachers. 

Virginia. 

Acts  of  1908,   Ch.   181. 

Firemen. 

Acts  of  1910,   Ch.   97. 

Teachers. 

Richmond. 

Acts  of  1898. 

Policemen. 

Washington. 

Acts  of  1909.     Applies  to  all  cities  and  towns. 

Firemen. 

Acts  of  1909,  Ch.  39,  as  amended  by  Acts  of  1911, 

Policemen. 

Ch.   18.     Applies  to  all  first-class  cities. 

Bill  No.   48,  Acts  of  1913. 

A  eacners. 

Acts   of   1915,   amending  previous  Acts. 

Policemen. 

West  Virginia. 

Act  of  1915. 

Teachers. 

Wisconsin. 

Acts    of    1907,    Ch.    214.      Applies    to    all   second-, 

Firemen. 

third-   and   fourth-class   cities. 

Acts  of  1907,  Ch.  87.    Applies  to  all  first-class    cities. 

Firemen. 

Acts  of  1907,  Ch.  671.     Applies  to  all  second-  and 

Policemen. 

third-class   cities. 

Acts  of  1911,  Ch.   323,  and  amendments. 

Teachers. 

Milwaukee. 

Acts  of  1899. 

Firemen. 

Acts  of  1891. 

Policemen. 

Acts  of  1909,  Ch.   510,  and  amendments. 

Teachers. 

Wyoming. 

No  legislation. 

MANAGEMENT. 

Under  the  laws  regulating  pensions  in  this  State,  except  those 
of  the  private  fund,  both  employing  body  and  employee  are  repre- 
sented on  the  board  of  trustees  in  charge  of  the  fund.  Here,  how- 
ever, uniformity  ceases.  In  point  of  numbers  and  in  method  of  se- 
lection of  members,  the  different  boards  present  a  great  variety.  In 
some  instances  the  employing  body  or  a  city  official  appoints  a  ma- 
jority of  the  members;  in  others,  the  employees  and  beneficiaries, 
voting  separately  or  together,  elect  a  majority;  and  in  others  certain 
officials  are  ex  officio  members  of  the  board. 

The  following  table  exhibits  in  outline  the  number  and  compo- 
sition of  the  several  boards  of  trustees : 


Beneficiaries. 

Number  of  trustees. 

Number  who  are 
trustees  by  virtue 
of  office  held. 

i     t^-—  • 
7-     •OrQ 
5  >>o  3 

Number  elected  by 
employees. 

Number  elected  by 
beneficiaries. 

ill 

Firemen          

8 

4 

0 

3 

0 

Chicago  policemen 

5 

0 

3 

1 

0 

Policemen  in  cities  of  50,000  or  over  
Policemen  in  cities  of  9,000  to  50,000  
Park  policemen  (Act  of  1913).. 

5 
3 
5 

0 
0 
0 

3 

2 
3 

1 
0 
1 

1 

0 

1 

0 

Park  policemen  (Act  of  1915) 

5 

0 

3 

1 

0 

Fire  insurance  patrolmen  

5 

5 

0 

0 

0 

0 

County  employees 

5 

2 

0 

3 

0 

0 

5 

2 

0 

3 

0 

0 

Public  school  emplo  >  ees  

6 

2 

0 

4 

0 

0 

Public  library  employees 

5 

2 

0 

"3 

0 

0 

Houses  of  correction  employees 

5 

2 

0 

2 

1 

0 

State  teachers  .                     

5 

2 

0 

0 

0 

0 

Chicago  teachers                            

9 

1 

6 

0 

3 

3  or  9 

iof 

0 

Iof 

0 

0 

no. 

no. 

iQne  of  the  these  must  be  a  member  of  the  board  of  trustees  of  the  library. 
aTwo  members  are  elected  by  the  board  of  education  from  among  their  own 
number. 


49 

In  each  of  the  following  cases,  the  treasurer  of.  the  city,  county 
or  State,  as  the  case  may  be,  is  custodian  of  the  fund : 

Firemen;  policemen  in  cities  of  9,000  to  50,000  inhabitants;  county 
employees;  municipal  employees  of  Chicago;  public  school  employees;  pub- 
lic library  employees;  houses  of  correction  employees;  State  teachers;  Chi- 
cago teachers;  Peoria  teachers. 

In  each  of  the  following  cases  the  treasurer  is  appointed  or 
elected  by  the  board  of  trustees  of  the  fund : 

Chicago  policemen;  policemen  in  cities  of  50,000  or  more  inhabitants; 
park  policemen  (Act  of  1913);  park  policemen  (Act  of  1915);  fire  insur- 
ance patrolmen. 

The  terms  of  office  for  employees  or  beneficiaries  elected  to  the 
several  boards  are,  in  the  case  of  the  Peoria  teachers,  fixed  by  the 
governing  board  of  the  school  district,  and  in  the  other  cases  fixed 
by  statute,  at  terms  varying  from  one  to  three  years. 

In  the  State  of  Illinois,  in  all  instances,  except  that  of  the  fire 
insurance  patrolmen's  fund,  the  employees  contribute  directly  by  deduc- 
tions from  salaries  and  are  represented  on  the  board  of  management. 
In  the  exception  noted,  the  employees  do  not  contribute  directly  from 
salaries  and  are  not  represented  on  the  board.  It  seems  to  be  a  principle 
recognized  generally  in  all  states  that  when  the  employees  contribute 
directly  from  salaries,  they  are  represented  on  the  board  of  manage- 
ment of  the  fund,  and  that  when  they  do  not  so  contribute  they  are 
not  so  represented.  The  following  exceptions,  among  others,  however, 
may  be  noted: 

Cases  in  which  the  employees  do  not  contribute  directly  from 
salaries  to  the  fund  but  are  represented  on  the  board  of  manage- 
ment: 

For  Firemen:  Ohio  (Dayton) ;  Oklahoma. 

For  Policemen:  South  Carolina  (Charleston);  Oregon. 

For  Teachers:  Louisiana  (New  Orleans). 

Cases  in  which  employees  contribute  directly  from  their  salaries 
to  the  fund,  but  are  not  represented  on  the  board  of  management : 

For  Firemen: 

California  (Oakland);  Connecticut  (Bridgeport  and  New  Haven);  Ken- 
tucky (Louisville);  Rhode  Island  (Providence). 

For  Policemen: 

California  (state-wide);  Colorado  (Denver);  Connecticut  (Bridgeport 
and  New  Haven);  Delaware  (Wilmington);  Iowa  (state-wide);  Kentucky 
(Louisville);  Maryland  (Baltimore);  New  Jersey  (Elizabeth  and  Newark); 
Oregon;  Pennsylvania;  Rhode  Island  (Providence). 

For  Teachers: 

Connecticut  (New  Haven  and  New  London);  Kansas;  Nebraska;  Vir- 
ginia. 

SOURCES  OF  REVENUE — CONTRIBUTIONS   FROM    EMPLOYEES. 

As  already  stated,  the  employees  contribute  directly  from  sal- 
aries to  pensions,  under  all  pension  acts  involving  the  expenditure  of 
public  money  in  the  State  of  Illinois.  This  practice  is  by  no  means 
universal  in  this  country.  Out  of  177  acts  investigated,  65,  or  about 
37  per  cent,  do  not  provide  for  direct  contributions  from  salaries  of 
employees.  Among  these  may  be  mentioned: 

For  Firemen: 

Alabama;.  California  (except  Oakland);  Colorado  (Denver);  Georgia 
(Atlanta);  Maine  (Portland);  Maryland  (Baltimore);  Massachusetts  (Bos- 


50 

ton);  Michigan  (Grand  Rapids);  Minnesota;  Nebraska;  New  Hampshire; 
New  York  (New  York  City,  Yonkers) ;  North  Dakota;  Ohio  (Dayton); 
Oklahoma;  Pennsylvania  (Pittsburg);  South  Carolina  (Charleston);  Ten- 
nessee (Chattanooga);  Utah;  Virginia. 

For  Policemen: 

Alabama;  Connecticut  (except  Bridgeport  and  New  Haven) ;  Louisiana 
(New  Orleans);  Maine  (Portland);  Massachusetts  (Boston);  Minnesota; 
New  Hampshire;  New  York  (New  York  City);  Pennsylvania  (except  Phila- 
delphia and  Pittsburg);  South  Carolina  (Charleston). 

For  Teachers: 

Alabama;  Arizona  (state-wide) ;  California  (state-wide) ;  Colorado  (Den- 
ver);  Georgia  (Atlanta);  Maine  (state-wide);  Maryland  (except  Baltimore 
and  Alleghany  County);  New  York  (state-wide);  Oregon;  Rhode  Island 
(except  Providence);  South  Carolina. 

The  contributions,  viewed  in  themselves,  offer  rather  a  wide 
divergence  among  the  several  funds.  Considered  in  connection  with 
the  benefits  offered,  the  divergence  is  still  wider.  In  four  funds  for 
which  figures  regarding  the  expected  future  payments  were  obtained, 
we  find  that  in  the  case  of  the  firemen's  fund  of  Chicago,  employees  con- 
tribute 1  per  cent  of  salaries,  whereas  benefits  are  worth  15.87  per 
cent  of  salaries;  the  Chicago  police  contribute  2  per  cent  of  salaries, 
whereas  benefits  are  worth  13.6  per  cent  of  salaries;  the  Chicago 
male  teachers  contribute  on  the  average  0.9  per  cent  of  salaries, 
whereas  benefits  are  on  the  average  worth  0.93  per  cent  of  salaries; 
and  the  Chicago  female  teachers  contribute  on  the  average  from  1.5 
to  1.6  per  cent  of  salaries,  whereas  benefits  on  the  average  are  worth 
2.95  per  cent  of  salaries.  Stating  these  results  in  terms  of  dollars: 
For  each  $100  contributed  from  salaries,  there  must  be  provided  from 
other  sources,  if  pensions  will  continue  to  be  paid  on  the  present 
basis : 

For  Chicago    firemen1 » $1,487 

For  Chicago    policemen1 , 630 

For  Chicago   male   teachers1 3 

For  Chicago   female    teachers1 87 

These  figures  were  compiled  from  the  actual  results  found  in 
our  investigations  of  these  funds,  where  the  number  of  employees  was 
large  enough,  and  the  pension  experience  long  enough,  to  enable  us 
to  make  an  actuarial  determination  of  the  expected  future  payments. 
A  comparison  between  these  and  the  small  funds  with  little  or  no 
pension  experience  can  not  be  made. 

SOURCES     OF     REVENUE CONTRIBUTIONS     FROM     SOURCES     OTHER     THAN 

.SALARIES    OF    EMPLOYEES. 

The  public  moneys  appropriated  in  Illinois  towards  the  pension 
funds,  in  no  case,  before  the  year  1915,  took  the  form  of  a  direct 
tax,  but  consisted  of  all,  or  part,  of  the  moneys  accruing  from  certain 
specified  sources.  In  the  year  1915  provisions  were  made  by  the 
Legislature  for  spreading  a  direct  tax  for  the  maintenance  of  the 
funds  for  firemen,  Chicago  policemen,  park  policemen  (Act  of 
1915),  and  State  teachers,  and  at  the  same  session,  it  was  made  manda- 
tory on  the  city  of  Chicago  to  contribute  certain  predetermined 

1  This  applies  only  to  employees  who  begin  contributing1  when  they  begin  their 
service.  It  does  not  take  care  of  accrued  liabilities  on  those  who  have  years 
of  service  that  count  toward  pension  when  they  begin  contributing. 


51 

amounts  towards  the  maintenance  of  the  Chicago  municipal  fund. 
In  the  case  of  the  State  teachers'  act,  this  provision  is  in  force  without 
limitation  of  time.  Under  the  acts  for  firemen  and  policemen,  just 
mentioned,  it  is  in  force ,  for  a  period  of  three  years  from  July  1, 
1915,  and  under  the  act  for  municipal  employees  of  Chicago,  for  two 
years  from  January  1,  1916. 

Regarding  this  provision  there  is  an  entire  lack  of  harmony  in 
the  laws  of  this  country.  In  some  of  the  leading  cities  and  in  some 
cases  where  legislation  is  state-wide,  moneys  accruing  from  specified 
sources  are  diverted  to  pension  purposes,  whereas  in  other  such  in- 
stances provision  is  made  for  a  direct  tax. 

Among  those  diverting  money  from  specific  sources  may  be 
mentioned : 

For  Firemen: 

Colorado  (Denver);  Connecticut  (New  Haven) ;  Kentucky  (Louisville); 
Louisiana  (New  Orleans);  Massachusetts  (Boston);  Minnesota  (St.  Paul, 
Minneapolis);  Missouri  (St.  Louis);  New  Jersey;  New  York  (New  York 
City,  Syracuse,  Yonkers) ;  Ohio;  Oklahoma  (all  incorporated  cities  and 
towns);  Pennsylvania  (Pittsburg);  Rhode  Island  (Providence);  South 
Carolina  (Charleston);  Tennessee  (Chattanooga);  Texas;  Washington;  Wis- 
consin. 

For  Policemen: 

California  (state-wide,  except  Oakland) ;  Colorado  (Denver);  Delaware 
(Wilmington) ;  Nebraska  (Omaha) ;  Louisiana  (New  Orleans) ;  Maryland 
(Baltimore);  Michigan  (Detroit);  Nebraska;  New  York  (New  York  City, 
Rochester) ;  Ohio  (Cincinnati,  Columbus,  Springfield) ;  Oregon;  Pennsylvania 
(Pittsburg);  Rhode  Island  (Providence);  South  Carolina  (Charleston); 
Washington  (all  first-class  cities) ;  Wisconsin. 

For  Teachers : 

California  (state-wide);  Connecticut  (New  Haven,  New  London); 
Delaware  (Wilmington);  Maine  (state-wide);  Nebraska  (Omaha);  North 
Dakota;  Ohio  (state-wide);  Oregon  (districts  of  more  than  10,000  children 
of  school  age);  South  Carolina  (Charleston). 

Among  those  spreading  a  direct  tax  may  be  mentioned : 

For  Firemen: 

Colorado  (Denver);  Indiana  (first-  and  second-class  cities;  optional  to 
others);  Kentucky  (Louisville);  Minnesota  (Minneapolis);  Ohio;  Washing- 
ton. 

For  Policemen: 

Colorado  (cities  over  100,000);  Indiana  (Indianapolis);  Iowa  (state- 
wide); Kentucky  (all  first-class  cities);  Minnesota;  Ohio  (except  Spring- 
field). 

For  Teachers: 

Colorado  (Denver);  Indiana  (cities  over  20,000);  Massachusetts  (Bos 
ton);  Minnesota  (cities  of  10,000  and  over). 

Among  those  providing  both  for  the  diversion  of  moneys  ac- 
cruing from  specific  sources  and  for  a  direct  tax  may  be  men- 
tioned : 

For  Firemen: 

Colorado  (Denver);  Kentucky  (Louisville);  Minnesota  (Minneapolis); 
Ohio;  Washington. 

For  Policemen: 

Colorado  (cities  over  100,000);  Iowa;  Kentucky  (all  first-class  cities). 


SOURCES  OF  REVENUE — COMBINATION  OF  ALL  SOURCES. 

Obviously  if  a  fund  is  to  remain  solvent,  the  amounts  in  the 
fund  at  any  specified  time,  together  with  those  to  be  received  from 
all  sources,  must  be  sufficient  at  all  times  to  meet  the  disbursements 
provided  for  in  the  act.  In  no  case  in  this  State  has  any  provision 
been  made  to  preserve  this  balance. 

In  several  funds  of  other  states  the  same  condition  exists,  no 
provision  for  solvency  being  made.  Among  these  may  be  mentioned : 

For  Firemen: 

Colorado  (Denver);  Connecticut  (New  Haven);  Indiana;  Kentucky 
(Louisville);  Louisiana  (New  Orleans);  Missouri  (St.  Louis);  New  Jersey; 
New  York  (New  York  City,  Syracuse,  Yonkers) ;  Ohio;  Oklahoma  (all 
incorporated  cities  and  towns);  Pennsylvania;  South  Carolina  (Charleston); 
Tennessee;  Texas;  Utah;  Virginia;  Washington;  Wisconsin  (all  first-class 
cities). 

For  Policemen: 

Connecticut  (Bridgeport);  Delaware  (Wilmington);  Indiana  (Indian- 
apolis); Iowa;  Kentucky  (all  first-class  cities);  Louisiana  (New  Orleans); 
Minnesota;  Nebraska;  New  York  (Rochester);  Ohio  (except  Springfield); 
Oregon  (cities  over  50,000);  Rhode  Island  (Providence);  South  Carolina 
(Charleston);  Virginia  (Richmond);  Washington  (all  first-class  cities); 
Wisconsin  (all  first-class  cities). 

For  Teachers: 

Colorado  (Denver);  Delaware  (Wilmington);  Indiana  (cities  over 
20,000);  Kentucky  (all  first-class  cities);  Louisiana  (New  Orleans);  Maine 
(state-wide);  Massachusetts;  Michigan  (Detroit);  Minnesota  (cities  of 
10,000  and  over);  Missouri  (St.  Louis);  Nebraska  (Omaha);  New  Jersey; 
North  Dakota;  Ohio;  Oregon  (districts  having  more  than  10,000  children 
of  school  age);  Pennsylvania;  Rhode  Island  (Providence);  South  Carolina 
(Charleston);  Utah  (state-wide);  Washington;  Wisconsin. 

In  contrast  to  the  lack  of  any  provision  in  this  State  for  main- 
taining the  solvency  of  a  fund,  are  the  provisions  in  the  laws  of 
several  other  states  providing  specifically  for  the  preservation  of  the 
fund.  In  the  cases  of  the  following  funds,  among  others,  it  is  pro- 
vided that  some  public  authority,  designated  in  each  instance,  shall 
contribute  the  amount  or  balance  necessary  to  pay  the  pensions  prom- 
ised. 

For  Firemen: 

California  (state-wide);  Connecticut  (Bridgeport);  Georgia  (Atlanta); 
Maryland  (Baltimore);  Massachusetts;  Michigan  (Grand  Rapids,  Detroit); 
Minnesota  (St.  Paul);  New  Hampshire;  North  Dakota;  Rhode  Island  (Provi- 
dence). 

For  Policemen: 

California  (Oakland);  Georgia  (Atlanta);  Maryland  (Baltimore);  Mas- 
sachusetts; Michigan  (Detroit);  New  Hampshire  (state-wide);  New  York 
(New  York  City);  Ohio  (Springfield). 

For  Teachers: 

Arizona;  Georgia  (Atlanta) ;  Kansas  (cities  of  first  class) ;  Maryland 
(Alleghany  County);  Massachusetts  (except  Boston);  New  York  (except 
New  York  City,  Rochester  and  Buffalo);  Rhode  Island  (except  Providence). 

LIMITATIONS    OF    PAYMENTS    BY    EMPLOYEES. 

In  all  'Illinois  funds,  with  the  exception  of  the  one  for  State 
teachers,  to  which  payments  cease  when  the  sum  of  $400  has  been 


53 

contributed,  deductions  are  made  from  salaries  from  date  of  entrance 
into  service  to  date  of  pension  without  regard  to  the  number  of  years 
of  service.  In  the  case  of  policemen  in  cities  of  from  9,000  to  50,000 
inhabitants,  deductions  are  also  made  from  pensions. 

In  the  case  of  State  teachers  and  Chicago  teachers,  a  minimum 
amount  must  be  paid  as  a  requirement  for  a  service  pension ;  in  the 
one  $400,'  in  the  other  $450.  In  the  case  of  the  municipal  employees 
of  Chicago,  if  the  sum  of  $480  is  not  contributed  at  the  time  of  en- 
trance to  a  service  pension,  the  balance  with  5  per  cent  interest  is 
deducted  from  the  pension  in  equal  amounts  during  the  first  three 
years  following  the  granting  of  such  pensions. 

In  the  case  of  public  library  employees,  the  minimum  amount 
required  is  the  equivalent  of  five  years'  contributions.  In  no  other 
fund  is  a  minimum  amount  in  contributions  required  from  an  em- 
ployee as  a  condition  for  a  service  pension. 

In  the  case  of  the  State  teachers,  the  sum  of  $400  must  be  paid 
into  the  fund  as  a  condition  for  a  disability  pension.  In  no  other 
fund  is  any  stated  amount  required  as  a  condition  for  a  disability 
pension. 

REFUNDS. 

In  the  Illinois  acts  for  firemen,  all  police  acts,  and  the  act  for 
fire  insurance  patrolmen,  there  is  no  provision  for  refund  to  the 
employee  in  the  event  of  separation  from  service  before  becoming 
entitled  to  pension.  In  the  others  the  provisions  are  as  follows : 


Beneficiaries. 


Provisions    for    refund. 


County  employees. 

Municipal    employees    of    Chi- 
cago. 


Public  school  employees. 
Public   library  employees. 

Houses    of   correction   employ- 
ees. 
State  teachers. 

Chicago  teachers. 
Peoria  teachers. 


In  case  of  abolition  of  position,  full  amount  con- 
tributed with  3  per  cent  interest. 

In  case  of  abolition  of  position,  full  amount  con- 
tributed. In  case  of  separation  from  service 
for  any  other  cause,  one-half  of  amount  con- 
tributed. 

In  case  of  resignation  or  dismissal  before  serving 
10  years,  one-half  of  amount  contributed. 

In  case  of  resignation  or  dismissal,  one-half  of 
amount  contributed. 

In  case  of  resignation  or  dismissal  after  serving 
3  years,  one-half  of  amount  contributed. 

In  case  of  ceasing  to  teach  before  serving  15 
years,  one-half  of  amount  contributed. 

In  case  of  dismissal,  full  amount  contributed.  In 
case  of  resignation  before  serving  15  years,  one- 
half  of  amount  contributed. 

Same  as  in  case  of  Chicago  teachers. 


Without  exception,  pension  acts  in  the  United  States  that  do 
not  provide  for  contributions  from  salaries  of  employees,  make  no 
provision  for  any  payment  to  employees  upon  separation  from  active 
service  on  account  of  resignation  or  dismissal;  and  in  those  cases 
where  such  contributions'  are  required,  the  payment  never  exceeds 
the  amount  contributed  by  the  employee.  This  would  imply  that  it  is 
recognized  as  a  princinle,  either  that  pensions  do  not  tend  to  lower 
salaries,  or  that  any  reduction  in  salaries  due  to  the  promise  of  pen- 
sion is  fully  compensated  for  by  the  benefits  and  protection  afforded 
the  employee  while  in  service. 


54 

It  seems  to  be  a  general  plan  in  all  states  where  contributions  are 
required  from  employees,  that  in  the  various  acts  for  firemen  and  po- 
licemen, no  provision  is  made  for  refund  or  payment  upon  resignation 
or  dismissal,  whereas  in  the  acts  for  teachers  and  other  employees, 
such  provision  is  made. 

Among  the  cases  where  refunds  are  made  to  firemen  and  police- 
men are : 


State    and    city" 

Beneficiaries. 

Maine   (Portland)    . 

Firemen. 

Ohio   (all  cities)    

Firemen  and,  with  exceptions,  policemen. 

In  these  instances  the  amount  to  be  refunded  is  left  to  the  dis- 
cretion of  the  board  or  determined  by  local  by-laws. 

Among  the  cases  where  refunds  are  not  made  to  teachers  are : 

Connecticut  (New  London);  Nebraska  (Omaha);  New  York  (except 
New  York,  Buffalo  and  Rochester);  Rhode  Island;  South  Carolina  (Charles- 
ton); Vermont  (state-wide);  Virginia  (state-wide). 

In  the  several  states,  the  variations  in  amounts  or  proportion  of 
contributions  refunded,  and  in  numbers  of  years  of  service  before 
which  or  after  which  refunds  are  permitted,  are  as  wide  as  in  our  own 
State;  and  the  several  provisions  compared  with  those  of  a  fund  for 
like  employees  in  our  State  exhibit  a  rather  close  similarity. 

CONDITIONS   FOR  PENSIONS SERVICE/   AGE. 

The  Illinois  acts  relating  to  firemen,  the  several  police,  the 
county  employees,  and  the  employees  of  the  houses  of  correction  re- 
quire a  minimum  length  of  service  of  20  years  for  eligibility  to  service 
pension ;  the  act  for  fire  insurance  patrolmen,  22  years ;  and  the 
three  acts  for  teachers,  25  years,  the  last  15  of  which  must  be  spent 
in  the  public  schools  to  which  the-  act  in  question  relates. 

The  act  relating  to  the  municipal  employees  of  Chicago  requires 
a  minimum  length  of  service  of  20  years,  except  in  the  case  of  Civil 
War  veterans,  who  may  retire  after  10  years  of  service  upon  reach- 
ing the  age  of  65. 

The  acts  relating  to  firemen,  Chicago  policemen,  policemen  in 
cities  of  50,000  or  more  inhabitants,  park  policemen  (Act  of  1913), 
employees  of  houses  of  correction,  Chicago  teachers  and  Peoria 
teachers  do  not  prescribe  a  minimum  age  for  retirement  on  service 
pension.  The  acts  relating  to  policemen  in  cities  of  9,000  to  50,000 
inhabitants,  park  policemen  (Act  of  1915),  fire  insurance  patrolmen 
and  State  teachers  prescribe  an  age  limit  of  50  years. 

The  acts  for  municipal  employees  of  Chicago  and  county  em- 
ployees prescribe  an  age  limit  of  55,  with  the  qualification  that,  upon 
completion  of  20  years  of  service,  the  employee  may  retire  from 
service  and,  by  continuing  payments  into  the  fund,  become  eligible' 
for  pension  at  age  55. 

The  provisions  for  pension,  because  of  length  of  service  and  age, 
in  some  of  the  laws  of  other  states  are  as  follows : 


55 

FIREMEN. 


State  and  city. 


Length  of  service  and  age. 


Alabama  (cities  of  25,000  to  50,000). 
Alabama  (cities  of  over  25,000). 
California  (except  Oakland). 
Colorado   (Denver). 

Connecticut   (Bridgeport). 
Georgia  (Atlanta). 

Indiana. 
Iowa. 

Louisiana  (New  Orleans). 
Maine   (Portland). 
Maryland   (Baltimore). 
Massachusetts    (Boston). 


Massachusetts    (cities  other  than  Bos- 
ton). 


Minnesota   (St.  Paul). 

Missouri  (St.  Louis). 

New  York    (New  York  City). 

Pennsylvania  (Pittsburg). 
Pennsylvania  (Philadelphia). 
Rhode  Island    (Providence). 


After  20  years  of  service  in  police  or  fire 
department,  if  50  years  of  age. 

After  25  years  of  service  in  police  or  fire 
department,  if  60  years  of  age. 

After  20  years  of  service,  if  60  years  of 
age. 

After  20  years  of  service,  if  50  years  of 
age. 

After  20   years  of  service. 

After  20  years  of  continuous  service,  if  60 
years  of  age. 

After  25   years  of  service. 

After  22  years  of  service,  the  last  5  con- 
tinuous. 

After  15  years  of  service,  if  60  years  of  age. 

After  15  years  of  service,  if  60  years  of  age. 

After  20  consecutive  years   of  service. 

After  25  years  of  service,  if  55  years  of 
age,  if  member  requests. 

After  15  years  of  consecutive  service,  board 
may  retire. 

In  cities,  after  25  years  of  service,  if  60 
years  of  age,  if  member  requests. 

In  towns,  after  25  years  of  continuous  serv- 
ice, if  60  years  of  age,  members  may  be 
retired. 

After  20  years  of  service,  if  50  years  of 
age,  and  a  member  of  the  association 
for  10  years. 

After  15  years  of  service,  if  60  years  of 
age. 

After  20  years  of  service,  on  request,  or  at 
discretion  of  fire  commissioner. 

After  20  years  of  service. 

After  20  years  of  service. 

After  65  years  of  age. 


POLICEMEN. 


State  and  city. 


Length  of  service  and  age. 


Alabama  (cities  of  25,000  to  50,000). 
Alabama  (cities  of  over  25,000). 
California  (except  Oakland). 
Colorado  (cities  over  100,000). 

Connecticut    (Bridgeport). 
Delaware   (Wilmington). 
Georgia    (Atlanta). 

Indiana   (all  cities  of  first- and  second- 
class,  and  all  other  cities  accepting). 
Iowa    (state-wide). 

Maine    (Portland). 

Maryland    (Baltimore). 

Michigan   (Detroit). 

Minnesota   (except  Minneapolis). 

Minnesota   (Minneapolis). 

Minnesota   (St.  Paul). 

Nebraska  (all  metropolitan  cities). 

Nebraska   (Omaha). 

New  Hampshire  (state-wide). 


After  20  years  of  service,    if    50    years    of 

age. 

After  25  years  of  service,    if    60    years    of 

age. 

After  20  years  of  service,    if    60    years    of 

age. 

After  60  years  of  age.     After  25   years   of 

service. 

After  20  years  of  service. 

After  25  years  of  service. 

After  35  years  of  continuous  service. 

After  20  years,  but  before  25  years;  after 

25  years  or  more. 

After  22  years  of  service,    the   last   5    con- 
tinuous, if  55  years  of  age. 

After  20  years  of  service,    if    65    years    of 

age. 

After  16  years  of  service. 

After  25  years  of  active  service. 

After  20  years  of  service,    if    50    years    of 

age. 

After  20  years  of  service,    if    55    years    of 

age. 

After  20  years  of  service,    If    50    years    of 

age. 

After  20  years  of  service,    if    50    years    of 

age. 

After  20  years  of  service,    if    50    years    of 

age. 

After  25  years  of  service  in  district. 


56 


POLICEMEN — Concluded. 


State  and  city. 


Length  of  service  and  age. 


New  Jersey  (all  cities  other  than  first- 
class — Acts  of  1912). 

New  Jersey  (park  police — Acts  of 
1910). 

New  Jersey  (all  cities— Acts  of  1885, 
Ch.  148). 

New  Jersey  (all  cities  accepting  pro- 
visions— Acts  of  1885,  Ch.  250). 

New  Jersey  (state-wide — Acts  of 
1908). 

New  Jersey   (Elizabeth). 


New  Jersey   (Newark). 

New  York  (New  York  City). 


New  York  (Rochester). 
Ohio   (Cincinnati). 

Ohio   (Columbus). 

Ohio   (Springfield). 

Oregon  (all  cities  of  over  50,000). 

Pennsylvania   ( Philadelphia) . 


Pennsylvania   (Pittsburg). 
Rhode  Island  (Providence). 

Washington  (all  first-class  cities). 

Wisconsin  (all  second-  and  third-class 
cities,  and  Milwaukee). 


After  20  years  of  service,  if  60  years  of 
age;  after  25  years  of  service,  if  55 
years  of  age. 

After  20  years  of  service,  if  60  years  of 
age. 

After  20  years  of  service,  if  60  years  of 
age. 

After  20  years  of  service,  if  60  years  of 
age. 

After  20  years  of  service,  if  65  years  of 
age. 

After  20  years  of  service,  if  60  years  of 
age ;  after  25  years  of  service,  if  55  years 
of  age. 

After  20  years  of  service,  if  60  years  of 
age. 

After  20  years  of  service,  if  55  years  of 
age,  may  be  retired  on  request.  After 
25  years  of  service  if  55  years  of  age, 
must  be  retired  on  request.  After  60 
years  of  age,  may  be  retired.  Veterans 
of  Civil  War  after  20  years  of  service  or 
after  reaching  age  60  must  be  retired. 

After  20  years  of  service. 

After  25  years  of  continuous  service,  if  55 
years  of  age. 

After  25  years  of  service. 

After  20  years  of  service. 

After  20  years  of  service,  if  50  years  of 
age. 

After  20  years  of  service,  if  50  years  of 
age,  member  may  retire  ;  after  2  0  years 
of  service  member  may  be  retired  at  dis- 
cretion of  police  department  at  any  age. 

After  20  years  of  service  in  the  city. 

After  30  years  of  service  in  the  department, 
if  60  years  of  age. 

After  20  years  of  service,  if  60  years  of 
age. 

After  22  years  of  service. 


TEACHERS. 


State  and  city. 


Length  of  service  and  age. 


Arizona  (state-wide). 
California    (state-wide). 


Colorado    (Denver). 

Connecticut    (New  Haven). 
Connecticut    (New  London). 
Delaware   (Wilmington). 


Georgia    (Atlanta). 

Indiana     (cities    of    55,000    to     60,000 

(Terre  Haute)). 
Indiana    (cities  of  20,000   to  100,000). 

Indiana    (cities    of    100,000    and    over 

(Indianapolis) ). 
Kansas    (all  first-class  cities). 

Kentucky    (all  first-class  cities). 
Louisiana    (Parish    of    Orleans     (New 
Orleans)  ). 


After  25   years   of  service  within  state. 

After  30  years  of  service,  15  of  which  must 
have  been  in  state,  including  the  10  im- 
mediately preceding  retirement. 

After  25  years  of  service,  15  of  which  must 
have  been  in  district.  Men  must  be  at 
least  60  years  of  age,  and  women,  50. 

After  30  years  of  service,  the  last  20  of 
which  must  have  been  in  city. 

After  30  years  of  service,  15  of  which  must 
have  been  in  city. 

After  30  years  of  service  and  65  years  of 
age.  After  35  years  of  service,  20  of 
which  have  been  in  city. 

After  35  years  of  continuous  service. 

After  30  years  of  service,  18  of  which  must 
have  been  in  city. 

After  30  years  of  service,  18  of  which  must 
have  been  in  district. 

After  25  years  of  service,  20  of  which  must 
have  been  in  city. 

After  30  years  of  service,  15  of  which  must 
have  been  in  a  first-class  city. 

After  30  years  of  service  in  pensioning  city. 

After  40  years  of  service. 


TEACHERS — Concluded. 


State  and  city. 


Length  of  service  and  age. 


Maine  (state-wide). 


Maryland   (Alleghany  Co), 
Maryland    (Baltimore). 
Michigan   (Detroit). 


Minnesota   (Duluth). 
Minnesota   (Minneapolis). 
Missouri  (St.  Louis). 

Nebraska   (Omaha). 


New  Jersey. 

New  York  (New  York  City). 

New  York    (Buffalo). 

New  York  (Rochester). 

New  York    (except  above  cities) 
North  Dakota    (state-wide). 

Ohio   (state-wide). 
Pennsylvania  (Philadelphia). 

Rhode  Island   (state-wide). 
Rhode  Island    (Providence). 

South  Carolina  (Charleston). 
Utah    (state-wide). 

Vermont  (state-wide). 
Virginia  (state-wide). 
Washington  (state-wide). 

Wisconsin   (state-wide). 
Wisconsin   (Milwaukee). 


After  25,  30  or  35  years  of  service,  includ- 
ing 20  years  of  service  in  state  schools, 
the  last  15  of  which  immediately  precede 
retirement,  provided  the  applicant  has 
reached  the  age  of  60. 

After  40  years  of  service. 

After  35  years  of  service. 

After  30  years  of  service,  of  which  20  must 
have  been  in  city,  or  after  25  years  of 
service  wholly  in  city. 

After  30  years  of  service. 

After  20  years  of  service. 

After  35  years  of  service,  or  on  request, 
or  at  discretion  of  board  of  education. 

After  35  years  of  service,  teachers  may  be 
retired  ;  after  40  years,  must  be.  In  each 
case,  20  years  of  service  in  city  is  re- 
quired. 

After  35  years  of  service,  20  of  which  are 
in  state. 

After  30  years  of  service  and  65  years  of 
age. 

After  30  years  of  service  for  females  and 
35  for  males,  four-fifths  of  which  must 
have  been  in  city. 

After  30  years  of  service  for  females  and 
35  for  males,  15  of  which  must  have 
been  in  city. 

After  25  years  of  service,  the  last  15  of 
which  must  have  been  in  the  district. 

After  25  years  of  service,  18  of  which,  in- 
cluding 5  immediately  preceding  retire- 
ment, must  have  been  in  state. 

After  30  years  of  service,  15  of  which  must 
have  been  in  district. 

After  30  years  of  service,  20  of  which  must 
have  been  in  city,  if  applicant  is  60  years 
of  age. 

After  35  years  of  service,  25  of  which  must 
have  been  in  state,  including  the  last  15 
years. 

After  35  years  of  service  for  males  and  30 
years  for  females,  the  last  20  years  of 
which  in  each  case  must  have  been  in 
city. 

After  25  years  of  service,  if  65  years  of 
age  and  "in  need  of  maintenance." 

After  30  years  of  service,  10  of  which  are 
in  city  or  state,  provided  applicant  has 
reached  age  of  60. 

After  25  years  of  service  entirely  in  state, 
or  30  years  of  service,  20  of  which  must 
have  been  in  state. 

After  30  years  of  service  in  state ;  men 
must  be  58  years  of  age ;  women,  50 
years  of  age. 

After  30  years  of  service,  15  of  which  are 
in  state,  for  males;  after  25  years  of 
service,  15  of  which  are  in  state,  for  fe- 
males. 

After  25  years  of  service,  18  of  which  must 
have  been  in  state. 

After  25  years  of  service,  15  of  which  must 
have  been  in  city. 


By  summarizing  the  information  in  these  tables  we  arrive  at 
the  following: 

For  firemen,  in  11  of  the  19  cases  mentioned,  there  are  pre- 
scribed both  a  period  of  service  such  as  20  or  25  years  and  a  mini- 
mum age  for  retirement  such  as  50  or  60  years.  Of  the  remainder, 
7  prescribe  only  a  period  of  service,  while  1  prescribes  an  age  limit 
only. 


58 

For  policemen,  in  24  of  the  36  cases  mentioned,  there  are 
prescribed  both  a  period  of  service  and  a  minimum  age  for  retire- 
ment. The  periods  of  service  vary  from  16  to  35  years v  and  the 
minimum  age  limit  from  50  to  65  years.  Excluding  the  two  cases  where 
alternative  exist :  In  7  cases,  the  age  limit  of  50  is  prescribed ;  in  4 
cases,  55  years ;  in  9  cases,  60  years ;  and  in  2  cases,  65  years. 

For  teachers,  in  only  9  of  the  38  cases  mentioned  are  both  a 
period  of  service  and  a  minimum  age  for  retirement  prescribed. 
The  period  of  service,  however,  is  as  a  rule  longer  than  that  re- 
quired of  firemen  and  policemen.  In  fact  in  only  1  of  the  38  cases 
mentioned  is  a  service  pension  granted  for  fewer  than  25  years  of 
service,  and  in  28  cases,  there  are  required  30  or  more  years  of 
service. 

CONDITIONS  FOR  PENSION DISABILITY. 

Under  the  Illinois  acts  for  firemen  and  fire  insurance  patrolmen, 
pension  is  awarded  at  any  time  if  physical  or  mental  disability  rend- 
ers retirement  from  active  service  necessary.  Under  the  several 
police  acts,  pension  is  awarded  at  any  time  if  disability  occurs  as  a 
result  of  injuries  received  in  performance  of  duty;  and  in  all  cases, 
except  that  of  policemen  in  cities  of  not  less  than  9,000  nor  more 
than  50,000  inhabitants,  if  the  policeman  becomes  insane  after  10 
years  of  service.  Under  the  act  for  houses  of  correction  employees, 
pension  is  awarded  upon  disability  after  3  years  of  contribution  to 
the  fund.  In  other  cases,  pensions  are  awarded  upon  disability  after 
the  following  years  of  service: 

Municipal  employees  of  Chicago 5  years. 

County  employees   5  years. 

Public  school  employees 10  years. 

Public  library  employees    10  years. 

State  teachers  15  years. 

Chicago   teachers 15  years. 

Peoria  teachers 15  years. 

In  the  last  three  mentioned,  service  may  have  been  rendered 
in  any  public  school  of  the  United  States,  provided  that  at  least  9 
of  such  years  have  been  spent  in  public  school  service  in  the  territory 
covered  by  the  act. 

It  is  common  to  practically  all  funds  in  this  country  for  firemen 
and  policemen  that  a  pension  is  granted  at  any  time  if  disability  is 
incurred  in  line  of  duty.  The  one  exception  to  this  that  has  come  to 
our  attention  is  in  the  case  of  the  Atlanta,  Georgia,  police  fund,  where 
disability  is  recognized  after  20  years  of  continuous  service. 

In  some  instances  a  pension  is  granted  to  members  of  the  fire  and 
police  departments  if  injury  is  received  in  a  way  other  than  in  per- 
formance of  duty.  Some  examples  are  the  following: 

For  Firemen: 

Louisiana  (New  Orleans);  Maryland  (Baltimore — at  discretion  of 
board);  Massachusetts  (Boston);  Minnesota  (St.  Paul— except  as  a  result 
of  immoral  habits);  Missouri  (St.  Louis);  New  York  (New  York  City); 
Wisconsin  (first-class  cities— after  10  years  of  service). 

For  Policemen : 

Delaware  (Wilmington— after  15  years  of  service) ;  Iowa  (after  5  years 
of  service) ;  Massachusetts  (all  cities  over  75,000— after  20  years  of  serv- 


59 


ice);  New  York  (New  York  City — after  10  years  of  service);  Ohio  (Cin- 
cinnati— after  15  years  of  continuous  service) ;  Pennsylvania  (Philadelphia 
— 10  years  of  service);  Virginia  (Richmond). 

For  Teachers: 

In  the  case  of  teachers,  a  pension  is  awarded  upon  disability 
under  nearly  all  funds.  The  years  of  service  before  disability  is 
recognized,  however,  vary  widely.  The  following  are  some  of  the 
provisions : 


State  and  city. 


Length  of  service  and  age. 


California    (state-wide). 
Colorado   (Denver). 
Connecticut   (New  Haven). 

Connecticut   (New  London). 
Delaware   (Wilmington). 

Georgia    (Atlanta). 

Indiana    (cities     of    55,000     to     60,000 

(Terre  Haute)). 
Indiana    (cities  of  20,000  to  100,000). 

Indiana   (Indianapolis). 
Kansas    (all  first-class  cities). 

Kentucky  (all  first-class  cities). 

Louisiana    (Parish    of    Orleans    (New 

Orleans) ). 
Maryland  (state-wide). 


Maryland   (Alleghany  Co.). 
Maryland   (Baltimore). 
Michigan   (Detroit). 

Minnesota   (Duluth). 
Nebraska  (Omaha). 

New  York  (New  York  City). 
New  York    (Buffalo). 

New  York  (Rochester). 

New  York    (except  above  cities). 
Ohio   (state-wide). 

Pennsylvania    ( Philadelphia ) . 


Rhode  Island  (Providence). 
South  Carolina  (Charleston), 
Utah  (state-wide). 


Virginia   (state-wide). 
Wisconsin   (state-wide). 
Wisconsin   (Milwaukee). 


After   15   years  of   service  in  state. 
After   10   years  of  service  in  district. 
After   15   years   of  service,   the  last  10   in 

city. 
After  25  years  of  service,  15  of  which  were 

in  city. 
After  20  years  of  service,  15  of  which  were 

in  city. 

After   20    years   of   service. 
After   20   years   of  service,    the   last   12    in 

city. 
After  20   years  of  service,   the  last  12   in 

district 

After  15  years  of  service  in  city. 
After  25  years  of  service,  15  of  which  were 

in  a  first-class  city. 
After    20    years    of    service    in    pensioning 

city. 
After  10  years  of  service. 

After  25  years  of  service,  if  60  years  of  age 
and  without  the  means  of  "comfortable 
support." 

After  20  years  of  service. 

After  20  years  ef  service  in  city. 

After  20  years  of  service,  10  of  which  were 
in  city. 

After  20  years  of  service. 

After  25  years  of  service,  20  of  which  were 
in  city. 

After  20  years  of  service,  15  of  which 
must  have  been  in  city. 

After  20  years  of  service  for  females  and 
25  for  males,  four-fifths  of  which  must 
have  been  in  city. 

After  20  years  of  service  for  females  and 
25  for  males,  15  of  which  must  have 
been  in  city. 

After  15  years  of  service,  last  9  of  which 
were  in  district. 

After  20  years  of  service,  10  of  which  were 
in  district 

After  5  years  of  service.  Board  of  retire- 
ment may  at  its  discretion  grant  full 
annuity  to  disabled  teachers  after  30 
years  of  service,  20  of  which  were  in  city. 

After  10  years  of  service  in  city. 

After  20  years  of  service  in  city. 

After  20  years  of  service;  but  if  disabil- 
ity ceases,  pension  is  stopped  unless  pen- 
sioner has  reached  60  years  of  age. 

After  20  years  of  service  in  state. 

After  18  years  of  service  in  state. 

After  15  years  of  service  in  city  (contri- 
butions for  15  years  must  have  been 
paid). 


From  this  table  it  may  be  noted  that  the  period  of  service  required 
for  a  disability  pension  varies  from  5  to  25  years  but  that  20  years  or 
more  are  required  in  20  of  the  30  cases  mentioned. 
— 5  PL 


60 


For  Other  Employees: 

In  the  case  of  state,  county  and  municipal  employees,  pension  is 
awarded  upon  disability  incurred  in  line  of  duty  at  any  time,  in  the 
following  cases: 


State    and    city. 


Beneficiaries. 


New  Jersey  (state-wide). 
New    York    (New   York   City). 
New   York    (New   York    City). 


Health  officers. 

Street  cleaning  department  employees. 

Health  officers. 


In  the  case  of  state,  county  and  municipal  employees,  pension  is 
awarded,  after  varying  periods  of  service,  upon  disability  not  in- 
curred in  line  of  duty,  in  the  following  cases: 


State  and  city. 

Beneficiaries. 

Length  of  service. 

Nebraska. 
New  Jersey. 
New  York. 

Public   library   employees. 
Health  officers. 
Street     cleaning     department     em- 
ployees. 

After  20  years  of  service. 
After  25  years  of  service. 
After  10  years  of  service. 

AMOUNT  OF  PENSION   PER  YEAR. 

Under  the  Illinois  laws  for  firemen  and  fire  insurance  patrol- 
men, the  amount  of  pension,  either  because  of  service  or  disability, 
is  one-half  of  salary  at  date  of  retirement.  In  the  several  police 
funds,  the  amount  of  service  pension  is  one-half  of  salary  attached 
to  rank  or  position  held  for  at  least  one  year  immediately  prior  to- 
retirement,  writh  limitations ;  for  disability  pensions,  one-half  of  salary 
at  date  of  retirement,  with  limitations.  In  the  cases  of  the  houses  of 
correction  employees,  municipal  employees  of  Chicago  and  county  em- 
ployees, the  pension  is  $600  per  annum.  For  public  library  and  pub- 
lic school  employees,  the  amounts  of  pension  are  determined  by  the 
board  of  trustees,  the  only  requirement  being  that  such  shall  not 
exceed  $600.  For  Illinois  State  teachers,  because  of  service,  $400; 
because  of  disability,  $16  for  each  year  of  service,  not  to  exceed 
$400;  for  Chicago  school  teachers,  because  of  service,  $400 — be- 
cause of  disability,  an  amount  proportional  to  the  sum  contributed 
as  related  to  the  sum  of  $450 ;  for  Peoria  teachers,  because  of  serv- 
ice, not  to  exceed  $400 — because  of  disability,  a  sum  proportional 
to  the  amount  contributed  as  related  to  the  sum  of  $400. 

For  Firemen: 

In  the  case  of  firemen  in  other  states  and  cities,  the  majority  pay 
in  service  pension  one-half  of  annual  salary  at  time  of  retirement, 
without  limitation.  Among  these  may  be  mentioned : 

Alabama  (cities  of  25,000  to  50,000— Gen.  Laws  of  1911;  all  cities  over 
25,000);  California  (state-wide,  except  Oakland);  Colorado   (Denver);  Iowa 
(mandatory  on  cities  having  a  paid  department;   permissive  on  cities  hav- 
ing an  organized  department) ;  Louisiana  (New  Orleans) ;  Maryland 
more) ;  Michigan  (Detroit) ;  New  Jersey  (all  first-class  cities  accepting  act 
all   municipalities,    other   than    those   of   the   first    class,   having   paid   fire 
departments);   New  York    (New  York  City,  Syracuse);    Oklahoma   (all  in- 


61 

corporated  cities  and  towns);   Pennsylvania   (Pittsburg) ;   Tennessee   (Chat- 
tanooga) ;  Wisconsin  (all  cities  of  the  first,  second,  third  and  fourth  classes). 

Among  those  firemen's  funds  where  some  other  plan  is  em- 
ployed, or  some  limitation  imposed  on  the  amount  of  service  pension 
are: 


State    and    city. 


Amount  of  pension. 


Connecticut    (New  Haven). 
Georgia  (Atlanta). 


Indiana  (all  first-  and  second-class 
cities,  and  all  third-,  fourth-  and 
fifth-class  cities  which  accept  the 
act). 

Maine  (Portland). 

Michigan    (Grand  Rapids). 
Minnesota  (cities  of  50.000  or  over). 
Minnesota  (St.  Paul). 
Minnesota  (Minneapolis). 

Nebraska    (all  metropolitan  and  first- 
class  cities). 
New  Hampshire. 

North   Dakota. 

Ohio  (all  cities  and  towns  having  a 
fire  department  supported  in  whole 
or  in  part  at  public  expense). 

Ohio   (Dayton). 

Ohio   (Cleveland). 


Pennsylvania  (Philadelphia). 
Rhode  Island  (Providence). 

South  Carolina  (Charleston). 

Texas. 

Virginia. 

Washington   (all  cities  and  towns). 


One-fourth  to  one-half  of  annual  salary  at 
time  of  retirement. 

One-half  of  annual  salary  at  time  of  re- 
tirement; not  exceeding  $50  monthly 
for  retirement  after  20  years  of  serv- 
ice; not  exceeding  $100  after  35  years 
of  service. 

After  25  years  of  service,  $20  to  $40 
monthly;  after  20  years  of  service,  $15 
to  $30  monthly.  • 

Not  to  exceed  one-half  of  annual  salary 
at  time  of  retirement. 

One-half  of  annual  salary  at  time  of  re- 
tirement, not  to  exceed  $450. 

To  be  fixed  by  local  by-laws,  not  to  ex- 
ceed $40  monthly. 

After  20  years  of  service  and  50  years 
of  age,  $480  annually. 

If  retired  because  of  age  (or  total  dis- 
ability), $480. 

One-half  of  annual  salary  at  time  of  re- 
tirement, not  over  $50  monthly. 

$500  based  on  25  years  of  service,  in  no 
case  less  than  $100. 

Determined  by  local  by-laws,  not  to  ex- 
ceed $40  monthly. 

Determined  by  local  by-laws. 


$40  monthly. 

Eleven-sixteenths  of  salary  at  time  of 
retirement  based  on  30  years  of  serv- 
ice, not  exceeding  $1,200,  except  in 
case  of  chief  and  two  assistants. 

One-half  of  average  annual  salary  for 
a  period  of  2  continuous  years. 

One-half  of  average  annual  salary  at 
retirement,  if  above  rank  of  assistant 
foreman;  all  others  receive  a  sum  not 
exceeding  $600. 

One-half  of  annual  salary,  not  less  than 
$120  annually. 

One-third   of   pay  at   time   of   retirement. 

Determined   by   local   authorities. 

One-half  of  pay  based  on  last  year. 


In  practically  all  the  above  cases,  the  same  pension  is  awarded 
because  of  disability. 

For  Policemen: 

Among  the  police  funds  which  pay  in  service  pensions  'one-half  of 
annual  salary  at  time  of  retirement,  without  limitation,  are  the  follow- 
ing: 

Alabama  (cities  over  25,000;  cities  from  25,000  to  50,000):  California 
(Oakland);  Colorado  (Denver);  Connecticut  (Bridgeport);  Delaware  (Wil- 
mington); Maine  (Portland);  Maryland  (Baltimore);  Michigan  (Detroit); 
New  Jersey  (all  cities  other  than  first  class;  Elizabeth;  Newark);  Ohio 
(Springfield);  Oregon  (oities  of  over  50,000);  Pennsylvania;  Pennsylvania 
(Pittsburg) ;  South  Carolina  (Charleston) ;  Washington  (all  first-class  cit- 
ies);  Wisconsin  (Milwaukee). 


62 

The  following  police  funds  are  among  those  which  follow  some 
other  plan,  or  impose  some  limitation  on  the  provision  for  payment  of 
one-half  annual  salary  at  time  of  retirement  on  service  pension: 


State    and    city. 


Amount  of  pension. 


Connecticut  (all  cities  having  police 
department  under  police  commis- 
sion, which  shall  accept  it). 


Connecticut   (New  Haven). 
Georgia   (Atlanta). 

Indiana     (cities    of    first    and    second 
class,  and  all  other  cities  accepting). 
Iowa  (state-wide). 


Louisiana   (New  Orleans). 
Minnesota   (state-wide). 

Minnesota   (Minneapolis,  St.  Paul). 
Nebraska      (all     metropolitan     cities; 

Omaha). 

New  Hampshire  (state-wide). 
New  York  (New  York  City,  Rochester). 

Ohio  (all  cities  and  towns  having 
police  departments  or  sanitary  po- 
lice departments  supported  in  whole 
or  in  part  at  public  expense). 

Ohio   (Cincinnati). 

Ohio    (Columbus). 

Pennsylvania   (second-class  cities). 
Pennsylvania   ( Philadelphia ) . 


Rhode  Island    (Providence). 
Virginia    (Richmond). 


One-fourth  to  one-half  of  annual  salary  at 
time  of  retirement  for  patrolmen,  not  to 
exceed  $500  ;  for  others  than  patrolmen, 
one-half  of  annual  salary  at  time  of  re- 
tirement. 

One-fourth  to  one-half  of  annual  salary  at 
time  of  retirement. 

One-half  of  annual  salary  at  time  of  re- 
tirement, not  to  exceed  $100  monthly. 

After  20  years  of  service,  $360 ;  after  25 
years  of  service,  $600. 

One-half  of  annual  salary  at  time  of  re- 
tirement, if  an  organized  department; 
such  sum  as  board  may  fix,  if  a  paid 
department. 

Not  over  $150  annually. 

Fixed  by  local  by-laws,  not  exceeding  $40 
monthly. 

$40  monthly. 

$50  monthly. 

$500  annually  based  on  25  years  of  service. 
Not   less   than  one-half   salary   at  time  of 

retirement. 
Determined   by   local   by-laws. 


$600   annually. 

After  25  years  of  service,  $480  if  retired  on 
own  request;  $600  if  retired  by  chief. 

Determined  by  local  authorities. 

Two  and  one-half  per  cent  of  average 
annual  salary  for  10  years  preceding  re- 
tirement ($3,000  taken  as  highest  an- 
nual salary),  multiplied  by  years  of  serv- 
ice, not  exceeding  20  years. 

Determined  by  Board  of  Police  Commis- 
sioners. 

$360  annually. 


In  practically  all  the  above  cases,  the 'same  pension  is  awarded 
because  of  disability. 

For  Teachers: 

In  none  of  the  states  is  the  teachers'  service  pension  one-half  of 
the  annual  salary  at  time  of  retirement,  without  limitation.  Some  of 
the  provisions,  for  service  and  disability  pensions  are  as  f ojlows : 


State  and   city. 


Amount  of  pension. 


Arizona. 
California. 

Colorado    (Denver). 
Connecticut   (New  Haven). 

Connecticut   (New  London), 
Delaware    ( Wilmington ) . 


A  flat  rate  of  $600  annually  for  all  an- 
nuitants. 

$500  annually,  based  on  30  years  of  serv- 
ice. Teachers  retiring  after  15,  and  be- 
fore 30,  years  of  service  receive  a  pro- 
portionate annuity. 

Not  more  than  $480  anuually  for  25  years 
of  service. 

One-half  of  average  annual  salary  for  last 
5  years  of  service,  not  less  than  $400 
nor  more  than  $800. 

One-half  of  average  annual  salary  for  last 
5  years. 

$400,  based  on  35  years  of  service. 


(53 


•   State  and   city. 


Amount  of  pension. 


Georgia   (Atlanta). 


Indiana    (cities   of   20,000    to    100,000 ; 

cities    of     55,000     to     60,000  ;     Terre 

Haute). 

Indiana   (Indianapolis). 
Kansas  (first  class  cities). 


Kentucky   (first  class  cities). 


Louisiana    (Parish    of    Orleans     (New 
Orleans) ). 


Maine. 

Maryland. 

Maryland   (Alleghany  Co.). 

Maryland   ( Baltimore ) . 
Massachusetts   (except  Boston). 

Massachusetts    (Boston). 
Michigan   (Detroit). 

Minnesota    (cities    of    10,000    or    more 

population). 
Minnesota   (Duluth). 
Minnesota   (Minneapolis). 


Missouri    (St.  Louis). 

Nebraska  (all  metropolitan  cities). 


New  Jersey  (state-wide). 

New    York    (New    York    City). 
New  York    (Rochester,  Buffalo). 
New  York  (except  above  cities). 
North  Dakota. 


One-half  of  salary  at  time  of  retirement, 
not  to  exceed  $50  per  month  for  20  years 
of  service,  or  $100  per  month  for  35 
years. 

$600  annually,  based  on  30  years  of  service. 


$600  annually,  based  on  40  years  of  service. 

$500  annually,  based  on  30  years  of  service. 
Teachers  retiring  after  25  years  of  serv- 
ice receive  a  proportionate  annuity. 

$400  annually,  based  on  40  years  of  serv- 
ice. Teachers  retiring  after  20  years,  but 
before  40  years,  of  service,  receive  a  pro- 
portionate annuity. 

One-half  of  average  annual  salary  for  last 
5  years,  in  no  case  to  be  less  than  $300 
nor  more  than  $600.  Teachers  retiring 
after  10  years,  but  before  40  years,  of 
service,  receive  amount  proportionate  to 
years  served. 

$250  annually,  based  on  35  years  of  service, 
and  lesser  amounts  arbitrarily  fixed  for 
30  and  25  years  of  service.  Special  half- 
rate  pensions  are  provided  for  teachers 
who  retired  from  service  previous  to  act 

A  flat  rate  of  $200  annually  for  all  an- 
nuitants. 

One-half  of  average  annual  salary  for  last 
5  years  of  service,  not  to  exceed  $400 
nor  be  less  than  $200.  Teachers  retir- 
ing after  20  years,  but  before  40  years, 
of  service,  shall  receive  amount  propoi- 
tionate  to  years  served. 

$600  annually,  based  on  35  years  of  service. 
A  minimum  of  $360  is  established,  and 
between  the  two  the  annuity  is  one-half 
the  average  annual  salary  for  last  5 
years  of  service. 

Retirement  allowance  consists  of  two  parts, 
annuity  and  pension.  Annuity  to  be 
such  as  can  be  purchased  by  contribu- 
tions of  member  with  compound  interest. 
Pension  to  be  of  equal  amount. 

Such  annuity  as  fund  will  allow  and  as 
board  of  trustees  may  determine.  (In 
1913,  this  was  $180.) 

$400  annually,  based  on  30  years  of  serv- 
ice, of  which  20  must  have  been  in  city, 
or  after  25  years  of  service  wholly  in  city. 

No  fixed  provision. 

$500,  based  on  30  years  of  service. 

$500,  based  on  30  years  of  service,  10  years 
of  which  must  have  been  in  city.  Teach- 
ers retiring  after  20  years,  and  before  30 
years,  receive  a  proportionate  annuity. 

$180,  based  on  35  years  of  service. 

$500,  based  on  35  years  of  service.  Teach- 
ers retired  after  25,  and  before  35, 
years  of  service,  receive  a  proportion- 
ate annuity. 

One-half  of  average  annual  salary  for 
last  5  years  of  service,  not  less  than 
$250  nor  more  than  $600. 

One-half  of  annual  salary  at  time  of  retire- 
ment, not  less  than  $600. 

One-half  of  annual  salary  at  time  of  re- 
tirement, not  to  exceed  $800. 

One-half  of  annual  salary  at  time  of  re- 
tirement, not  to  exceed  $600. 

One-fiftieth  of  average  annual  salary  for 
last  5  years  of  service  multiplied  by 
whole  number  of  years  of  service,  not 
to  exceed  $750  annually  or  to  be  less 
than  $350  annually. 


State  and  city. 


Amount  of  pension.  ' 


Ohio. 

Oregon    (districts  having  more   than 

10,000   children  of  school  age). 
Pennsylvania  (Philadelphia). 


Rhode  Island. 

Rhode  Island   (Providence). 
South  Carolina  (Charleston). 
Utah  (state- wide). 

Vermont. 

Virginia. 

Washington. 

Wisconsin. 

Wisconsin  (Milwaukee). 


$12.50    for    each    year   of    service,    not    to 

exceed   $450. 
Discretionary. 

One-half  of  salary  at  time  of  retirement, 
not  less  than  $400  nor  more  than 
$1,000.  Teachers  retiring  after  5 
years,  and  before  30  years,-  of  service, 
receive  a  proportionate  annuity. 

One-half  of  average  annual  salary  for 
last  5  years  of  service,  not  to  ex- 
ceed $500. 

One-half  of  salary  at  retirement,  not  to 
exceed  $600. 

One-half  of  salary  at  time  of  retirement, 
not  to  exceed  $250. 

One-half  of  average  annual  salary  for 
last  5  years  of  service,  not  to  exceed 
$600.  Teachers  retiring  after  20  years 
of  service,  and  before  30  years,  receive 
a  proportionate  annuity. 

One-half  of  average  annual  salary  for 
last  5  years  of  service,  not  to  exceed 
$500. 

One-half    of    average    annual    salary    for 

last   5    years   of  service,   not  to  exceed 

$500. 
One-half  of  average  annual  salary  during 

last   5   years   of  service,   not   to   exceed 

$600. 
$12.50  for  each  year  of  service,  not, 

however,  to  exceed  $450  in  any  one  year. 

A  flat  rate  of  $400  for  all  annuitants. 


PROVISIONS  FOR  DISCONTINUANCE  OF  PENSION. 

In  Illinois,  pension  terminates  when  disability  ceases  in  the  fol- 
lowing cases : 

Firemen,  policemen,  houses  of  correction  employees,  municipal  em- 
ployees of  Chicago,  public  library  employees,  public  school  employees,  Illi- 
nois state  teachers  and  county  employees. 

In  some  of  these  instances  the  further  requirement  of  submitting 
to  physical  examination  is  added.  The  police  acts  contain  the  addi- 
tional provision  that  in  case  of  either  service  or  disability  pension, 
pension  ceases  if  pensioner  is  convicted  of  felony  or  becomes  a 
habitual  drunkard,  or  a  nonresident  of  this  State  in  some  instances, 
and  of  the  United  States  in  others.  In  the  acts  for  Chicago  teachers, 
Peoria  teachers  and  fire  insurance  patrolmen,  no  provisions  are  made 
for  discontinuance  either  of  service  or  disability  pension. 

Among  the  acts  in  other  states  it  is  common  to  find  -regulations 
providing  for  termination  of  pension  upon  conviction  for  felony, 
habitual  drunkenness,  or  leading  an  immoral  life.  In  some  instances 
pensions  may  be  revoked  upon  failure  to  provide  for  family. 

WIDOWS    OF    EMPLOYEES CONDITIONS    FOR    PENSION;    AMOUNT    OF 

PENSION   PER  YEAR. 

Of  the  15  Illinois  acts  under  consideration,  8  provide  for  pen- 
sions to  widows,  1  provides  for  payment  to  widows  of  employees  who 


65 

were  not  pensioners  at  time  of  death,  and  6  make  no  provisions  of  any 
description  for  widows. 

The  acts  that  provide  pensions  to  widows  are  those  for : 

Firemen,  policemen  (all),  fire  insurance  patrolmen  and  houses  of  correc- 
tion employees. 

The  act  that  provides  for  payments  .to  widows  of  employees  at 
death  of  husband  is  that  for : 
Public  library  employees. 
The  acts  that  make  no  provision  for  widows  are  those  for : 

County  employees,  municipal  employees  of  Chicago,  public  school  em- 
ployees, Illinois  state  teachers,  Chicago  teachers  and  Peoria  teachers. 

In  the  case  of  firemen,  the  widow  of  an  employee  who  dies  while 
in  service  or  on  pension  is  entitled  to  pension,  the  only  restriction 
being  that  in  the  case  of  the  widow  of  a  pensioner,  she  must  have 
been  married  to  him  before  the  date  of  his  retirement  on  pension.  The 
provisions  in  the  act  for  fire  insurance  patrolmen  are  similar,  except 
that  there  is  no  restriction  in  any  event  as  to  date  of  marriage. 

In  the  several  police  funds,  a  pension  is  granted  to  widows : 

1.  Whose  husbands  were  either  service  or  disability  pensioners. 

2.  Whose  husbands  lost  their  lives  while  in  the  performance  of 
duty. 

3.  Whose  husbands  died  while  in  service  after  at  least  10  years  of 
service. 

For  groups  1  and  3  above,  there  are  restrictions  in  most  funds, 
varying  among  the  several  funds,  regarding  dates  of  marriage.  These 
are  by  no  means  uniform. 

In  the  case  of  library  employees,  death  benefits,  not  to  exceed  one 
year's  benefit,  are  paid  to  the  widows  of  employees  who  die  while  in 
active  service,  but  not  to  the  widows  of  pensioners.  In  the  act  for 
houses  of  correction  employees,  a  pension  is  granted  to  a  widow  whose 
husband  was  either  a  service  or  disability  pensioner,  or  died  while  a 
contributor,  provided  marriage  took  place  at  least  5  years  .before  his 
death  and  prior  to  retirement  in  the  case  of  a  service  pensioner  or  5 
vears  before  death  in  the  other  cases. 

In  the  acts  providing  for  pensions  to  widows,  the  provisions  for 
amounts  to  be  paid  per  year  are  as  follows : 


Beneficiaries. 


Amount  of  pension. 


Firemen 

Policemen  (all) 


Fire  insurance  patrolmen 

Houses  of  correction  employees, 


$540. 

Same  amount  as  was  paid  to  husband  or 
would  have  been  paid  to  him  had  he  be- 
come the  pensioner  instead  of  her. 

$360. 

$600. 


In  the  acts  in  force  in  other  states,  the  provisions  of  several  for 
pensions  or  payments  to  widows  of  firemen  and  policemen  are  given 
in  the  following  table: 


66 


FIREMEN. 


State  and  city. 


Amounts  of  pension  and  conditions  for  pension. 


California   ( state-wide ) . 


California    (Oakland). 

Colorado  (cities  over  100,- 
000). 

Connecticut  (New  Ha- 
ven). 

Indiana  (all  first-  and  sec- 
ond-class cities,  and  all 
third-,  fourth-  and  fifth- 
class  cities  which  ac- 
cept act). 

Iowa  (mandatory  on  cit- 
ies having  a  paid  de- 
partment ;  permissive 
on  cities  having  an 
organized  department). 

Kentucky  (all  first-class 
cities). 

Maine  (Portland). 

Maryland    (Baltimore). 


Massachusetts   (Boston). 


Michigan 
ids). 


( Grand     Rap- 
Michigan   (Detroit). 

Minnesota    (cities   of   50,- 

000  and  over). 
Minnesota    (Minneapolis). 

Nebraska  (all  metropoli- 
tan and  first-class  cit- 
ies). 

New  Jersey  (all  first-class 
cities  accepting  act). 

New  Jersey  (all  munici- 
palities, other  than 
those  of  the  first  class, 
having  paid  fire  depart- 
ments ) . 

New  Jersey  (Jersey  City). 

New  York  (New  York 
City). 


Ohio    (Dayton). 


Ohio  (Cleveland). 

Oklahoma  (all  incorpo- 
rated cities  and  towns). 

Pennsylvania  (Pitts- 
burg). 

Pennsylvania  (Philadel- 
phia). 

South  Carolina  (Charles- 
ton). 

Tennessee  (Chattanooga). 


If  death  of  husband  occurs  in  line  of  duty,  a  pension  of 
one-third  salary.  If  death  occurs  from  other  causes 
after  10  years  of  service,  $1,000. 

Same  as  above,  except  one-half  instead  of  one-third 
salary. 

If  death  of  husband  occurs  in  line  of  duty,  or  while 
in  service  or  on  retired  list  from  any  cause,  $30 
monthly. 

If  death  of  husband  occurs  in  line  of  duty,  a  sum  not 
exceeding  $2,000. 

If  death  of  husband  occurs  in  service  or  after  retire- 
ment, $20  to  $25  monthly. 


In  event  of  death  of  member  in  city  department  in 
line  of  duty,  widow  receives  $20  monthly.  In  towns, 
pension  to  be  determined  by  board. 


If  death  of  husband  occurs  in  line  of  duty  or  from  any 
cause,  after  15  years  of  service,  $30  monthly. 

If  death  of  husband  occurs  in  line  of  duty,  a  sum  not 
to  exceed  $25  monthly. 

If  death  of  husband  occurs  in  line  of  duty,  widow  re- 
ceives annually  one-half  of  annual  salary  at  time  of 
death. 

If  death  occurs  in  line  of  duty,  widow  or  children  under 
16  years  of  age  may  receive  annuity  of  not  over  $300 
from  the  city  and  a  further  sum  of  $1,000  from  the 
state. 

If  death  of  husband  occurs  from  injury  received  in  line 
of  duty  within  1  year  from  date  of  injury,  $300  an- 
nually for  5  years. 

Under  same  conditions  as  Grand  Rapids,  $300  annually. 

If  death  of  husband  occurs  in  line  of  duty,  such  pen- 
sion as  local  by-laws  permit. 

In  event  of  death  of  members,  an  annuity  of  not  over 
$480,  and  a  death  benefit  of  $125. 

If  death  of  husband  occurs  in  line  of  duty,  one-half  of 
annual  salary  at  time  of  death,  not  over  $50  monthly. 

If  death  of  husband  occurs  after  5  years  of  service  or 
after  retirement,  one-half  of  salary  at  time  of  death 
or  retirement. 

Same  as  above. 


In  event  of  death,  one-half  of  salary  at  time  of  death, 
paid  annually. 

In  event  of  death  in  line  of  duty,  not  over  one-half  of 
pay  at  time  of  death,  not  exceeding  $1,000  annually 
to  dependents;  widows  may  receive  $600  if  half  of 
pay  be  less  than  that ;  in  event  of  death  from  other 
causes,  not  over  $300  annually  to  dependents. 

If  death  of  husband  occurs  in  line  of  duty,  $25  monthly 
(while  widow  is  unmarried).  If  death  of  husband 
occurs  after  5  years  of  service  from  any  cause  ex- 
cept in  line  of  duty,  or  self-abuse,  widow  and  chil- 
dren receive  the  same  annuities. 

Upon  death  of  husband,  annuities  of  $60  to  $300  ac- 
cording to  length  of  service  of  husband. 

Upon  death  of  husband,  one-half  of  salary  at  time  of 
death. 

Upon  death  of  husband   (active  member) ,  $1,000. 

If  death   of  husband  occurs  In  line  of  duty,   $240   an- 

If  death*  of  husband  occurs  in  line  of  duty,  or  after  20 
years  of  service,  12  being  consecutive,  from  any  cause, 
a  payment  not  less  than  $50  nor  more  than  $100. 

If  death  of  husband  occurs  in  line  of  duty,  a  payment 
of  $500. 


67 


FIREMEN— Concluded. 


State  and  city. 


Amounts  of  pension  and  conditions  for  pension. 


Texas. 
Utah. 

Washington       (all     cities 
and  towns). 


Wisconsin    (Milwaukee). 


Upon  death  of  husband,  $144  annually. 

If  death  of  husband  occurs  in  line  of  duty,  a  payment 
of  $2,500. 

If  death  of  husband  occurs  in  line  of  duty,  one-half  of 
salary  at  time  of  death.  If  death  results  from  nat- 
ural cause,  after  2  years  of  service,  a  payment  of 
$1,000. 

In  event  of  death  incurred  in  line  of  duty  if  after  10 
years  of  service,  dependents  receive  $420  to  $720  an- 
nually according  to  rank  of  member,  and  each  child 
under  18  years,  $72,  the  total  amount  not  to  exceed 
one-half  of  salary  at  time  of  death. 


POLICEMEN. 


State  and  city. 


Amounts  of  pension  and  conditions  for  pension. 


California  (state-wide). 


California  (Oakland). 

Colorado  (cities  over  150,- 

000). 
Colorado    (Denver). 

Connecticut  (all  cities 
having  police  depart- 
ment under  police  com- 
mission, which  shall  ac- 
cept it). 

Connecticut  (New  Ha- 
ven). 

Indiana  (all  cities  of 
first  and  second  class, 
and  all  other  cities 
accepting). 


Kentucky  (all  first-class 
cities). 

,ouisiana     (New 
Orleans). 

Maryland  (Baltimore). 
Massachusetts    ( Boston ) . 

Nebraska  (all  metro- 
politan cities). 

STew  Jersey  (all  cities 
other  than  first  class 
—Acts  of  1912). 

STew  Jersey  (park  po- 
lice— Acts  of  1910). 

New  Jersey  (all  cities 
accepting  provisions — 
Acts  of  1885). 

Mew  Jersey  (Newark). 
\v     York     (New     York 
City). 


)hio  (Cincinnati). 


If  death  of  husband  occurs  in  line  of  duty,  one-third 
of  salary.  If  death  results  from  natural  causes  after 
10  years  of  service,  $1,000. 

Same  as  above,  except  one-half  of  salary  instead  of 
one-third. 

If  death  of  husband  occurs  in  line  of  duty,  $30  monthly. 

If  death  of  husband  occurs  in  line  of  duty,  $30  monthly 

until   marriage. 
If  death  of  husband   occurs  in  line  of  duty,  not  over 

$300    annually. 


If  death  of  husband  occurs  in  line  of  duty,  a  sum  not 

exceeding  $2,000. 
If    death    of    husband    occurs    in    line    of    duty,    $30 

monthly. 


If    death    of    husband    occurs    in    line    of    duty,    $20 

monthly. 
If  death  of  husband  occurs  in  line  of  duty,  or  from 

any   natural    cause   after   15    years   of   service,    $30 

monthly. 
If  death  of  husband  occurs  in  line  of  duty,  or  after 

20  years  of  service  from  natural  causes,  not  over 

$150. 
If  death  of  husband  occurs  in  line  of  duty,  board  to 

make  reasonable  provision. 
In   event   of   death   in    line   of   duty,    $300    annually    to 

widow   or  children  under   16   years  of  age. 
If    death    of    husband    occurs    at    any    time    in    line    of 

duty,  not  less  than  $20  monthly. 

If    death    of    husband    occurs    in    line    of    duty,    one- 
half  of  annual  salary  at  time  of  death. 

Same  as  above. 
Same  as  above. 


Same  as  above. 

To  the  dependent  parents  or  widow,  or  children  under 
18  years  of  age  of  member  dying  as  a  result  of  injury 
received  in  performance  of  duty,  a  sum  not  exceed- 
ing $600  annually  is  paid.  If  member  dies  after  10 
years  of  service  or  while  on  pension,  widow  or  chil- 
dren receive  not  over  $300  annually. 

If  death  of  husband  occurs  in  line  of  duty  or  after 
15  years  of  service,  or  if  an  annuitant  dies,  $240 
annually.  If  an  active  member  dies,  the  sum  of 
$100,  if  widow  is  entitled  to  annuity;  the  sum  of 
$300,  if  she  is  not  entitled  to  annuity. 


68 


POLICEMEN— Concluded. 


State  and  city. 


Amounts  of  pension  and  conditions  for  pension. 


Ohio   (Columbus). 


Ohio   (Springfield). 

Oregon  (all  cities  over 
50,000). 

Pennsylvania  (state- 
wide). 

Pennsylvania  (Philadel- 
phia). 


Pennsylvania 

burg). 
Washing-ton       (all 

class  cities). 


(Pitts- 

first- 


Wisconsin      (all      second- 
and   third-class   cities). 

Wisconsin    (Milwaukee). 


If  death  of  husband  occurs  in  line  of  duty  or  after 
10  years  of  service,  or  if  an  annuitant  dies,  not 
over  $300  annually. 

Upon  death  of  husband  (an  active  member),  $240 
annually. 

If  death  of  husband  occurs  in  line  of  duty,  one-third 
of  annual  salary  at  time  of  death. 

If  death  of  husband  occurs  in  line  of  duty,  not  more 
than  one-half  of  annual  salary  at  time  of  death. 

If  death  of  husband  occurs  within  60  days  from 
date  of  injury  received  in  line  of  duty,  $240  an- 
nually. 

Death  benefit  of  $1,000. 

If  death  of  husband'  occurs  in  line  of  duty,  one- 
third  of  annual  salary  at  time  of  death.  If  death 
occurs  from  natural  causes  after  5  years  of  serv- 
ice, $1,000. 

If  death  of  husband  occurs  in  li.ne  of  duty,  or  from 
natural  causes  after  10  years  of  service,  one- 
third  of  salary  at  time  of  death. 

If  death  of  husband  occurs  in  line  of  duty,  or  from 
natural  causes  after  15  years  of  service,  or  if  an 
annuitant  dies,  $420  to  $900,  according  to  rank. 


In  no  case  in  the  several  teachers'  acts  in  other  states  is  provision 
made  for  pensions  to  dependents.  In  just  one  case  are  payments 
made  upon  the  death  of  annuitant,  this  single  instance  being  that  of 
the  Massachusetts  teachers  outside  of  Boston,  to  whom  the  payment 
consists  of  a  return  of  contributions  over  amount  paid  in  pension  if 
death  occurs  before  the  total  amount  received  in  pension  exceeds  the 
amount  contributed  by  the  teacher. 

WIDOWS  OF  EMPLOYEES — PROVISIONS  FOR  DISCONTINUANCE  OF  PENSION. 

Under  all  Illinois  acts  where  pension  is  granted  to  widows,  such 
pension  terminates  if  widow  marries.  In  the  cases  of  policemen  in 
cities  of  50,000  or  over,  policemen  in  cities  of  9,000  to  50,000,  and 
park  policemen  (Act  of  1913),  the  widow  is  subject  to  the  same  pro- 
visions relating  to  termination  of  pension  because  of  conviction  of 
felony  or  habitual  drunkenness,  or  because  of  nonresidence,  as  those 
imposed  upon  husbands. 

NATURAL   CHILD   OR   CHILDREN   OF   EMPLOYEES — CONDITION    FOR 
PENSIONS;  AMOUNTS  OF  PENSION  PER  YEAR;  PROVISIONS 

FOR  DISCONTINUANCE  OF  PENSION. 

.  The  eight  Illinois  acts  that  provide  for  pensions  to  widows  also 
make  provisions  for  pensions  to  children.  In  the  acts  for  firemen  and 
fire  insurance  patrolmen,  children  are  pensioned  upon  the  death  of 
the  father  while  in  service  or  on  pension,  provided  only  in  the  case 
of  service  pensioners  that  marriage  of  father  and  mother  took  place 
before  date  of  retirement.  Children  of  those  who  were  disability 
pensioners  are  not  subject  under  these  acts  to  this  restriction. 

Under  the  various  police  acts  and  the  houses  of  correction  act, 
the  death  of  both  father  and  mother  is  a  condition  for  pension.  In 
these  acts,  also,  the  children  must  be  under  16  years  of  age.  The  othei 
conditions  are  the  same  as  those  governing  pensions  to  widows  under 
the  several  acts. 


69 

In  all  the  police  acts,  except  that  relating  to  policemen  in  cities  of 
9,000  to  50,000  inhabitants,  provision  is  made  for  pensioning  children 
under  16  years  of  age  of  a  policeman  who  becomes  insane  after  at 
least  10  years  of  service.  If  the  father  has  not  been  taken  outside  the 
State,  the  same  provisions  apply  in  this  case  as  apply  in  that  of  chil- 
dren of  a  policeman  who  dies  after  at  least  10  years  of  service. 

Under  the  act  for  firemen,  each  eligible  child  receives  $96  per 
year  if  the  mother  is  living,  and  $180  per  year  if  the  mother  is  dead. 
Under  the  several  police  acts,  the  family  receives  the  same  pension  as 
was  provided  for  father  or  mother,  to  be  divided  equally  among  the 
eligible  children.  Under  the  act  for  fire  insurance  patrolmen,  each 
eligible  child  receives  $72  per  year.  Under  the  houses  of  correction 
act,  $600  per  annum  is  divided  equally  among  the  eligible  children  in 
the  family. 

In  all  cases  pension  terminates  when  the  child  attains  to  16  years 
of  age.  In  some  few  of  the  acts  are  provisions  for  terminating  the 
pension  if  the  child  is  convicted  of  felony  or  habitual  drunkenness,  or 
marries. 

The  conditions  for  pension  and  the  amounts  received  in  pension 
by  children  in  several  of  the  firemen's  and  policemen's  funds  in  other 
states  are  as  follows: 

FIREMEN. 


State  and  city. 


Amount  of  pension,  and  conditions  for  pension. 


Colorado    ( Denver ) . 


[ndiana  (all  first-  and  sec- 
ond-class cities,  and  all 
third-,  fourth-  and  fifth- 
class  cities  which  ac- 
cept act). 

Kentucky  ( all  first-class 
cities). 

Louisiana  (New  Orleans). 


Massachusetts   ( Boston ) . 
Minnesota     (St.    Paul). 


Missouri    (St    Louis). 
Ohio    (Cleveland). 
Texas  (state-wide). 
Wisconsin    ( Milwaukee  ) . 


If  death  of  father  occurs  in  line  of  duty,  or  while  in 
service  or  on  retired  list,  from  any  cause,  the  sum 
of  $6  monthly  to  each  child  under  14  years  of  age. 

If  death  of  father  occurs  in  service  or  after  retire- 
ment, the  sum  of  $6  monthly  to  each  child. 


If  death  of  father  occurs  in  line  of  duty,  or  from  any 
cause  after  15  years  of  service,  the  sum  of  $6  monthly 
to  each  child  under  14  years  of  a&e. 

If  death  of  father  (an  active  member)  occurs  in  line 
of  duty,  or  after  1  year  of  service,  the  sum  of  $72 
annually  to  each  child  under  14  years  of  age. 

See  widows. 

Upon  death  of  active  member  or  pensioner,  the  sum  of 
$5  monthly  to  each  child  under  16  (total  for  family » 
including  $30  to  widow,  not  to  exceed  $40  monthly). 
In  case  of  death  of  widow,  children  to  receive  such 
sum  as  board  determines,  not  exceeding  $40  monthly. 

Upon  death  of  active  member,  the  sum  of  $72  annually 
to  each  child  under  14  years  of  age. 

Upon  death  of  father,  annuities  of  $36  to  $84  to  each 
child  under  16  years  of  age. 

Upon  death  of  father,  an  annuity  of  $36  to  each  child 
under  16  years  of  age. 

See  widows. 


70 

POLICEMEN. 


State  and  city. 


Amount  of  pension,  and  conditions  for  pension. 


Colorado  (cities  over  100,- 

000). 
Colorado    (Denver). 

Indiana  (all  cities  of  first 
and  second  class,  and  all 
other  cities  accepting). 

Kentucky  (all  first-class 
cities). 

New     York     (New     York 

City). 
Ohio    (Cincinnati). 


If  death  of  father  occurs  in  line  of  duty,  the  sum  of 
$6  monthly  to  each  child  under  16  years  of  age. 

If  death  of  father  occurs  in  line  of  duty,  the  sum  of 
$6  monthly  to  each  child  under  14  years  of  age. 

If  death  of  father  occurs  in  line  of  duty,  the  sum  of 
$6  monthly  to  each  child  under  16  years  of  age. 

If  death  of  father  occurs  in  line  of  duty,  or  from  any 
natural  cause,  after  15  years  of  service,  the  sum  of 
$6  monthly  to  each  child  under  14  years  of  age. 

See  widows. 

If  death  of  father  occurs  in  line  of  duty,  or  after  15 
years  of  service,  or  if  an  annuitant  dies,  the  sum  of 
$72  annually  to  each  child  under  16  years  of  age. 


OTHER  DEPENDENTS   OF  EMPLOYEES. 

In  the  Illinois  act  for  firemen,  provision  is  made  whereby  depend- 
ent parents  receive  $300  each  per  annum  if  no  widow  or  eligible 
children  survive.  In  all  the  police  acts,  except  that  relating  to  cities 
of  9,000  to  50,000,  the  wife  of  a  policeman  who  becomes  insane  after 
at  least  10  years  of  service  is  pensioned  under  the  same  provisions  as 
apply  to  the  widow  of  a  policeman  who  dies  after  at  least  10  years 
of  service.  In  the  act  for  fire  insurance  patrolmen,  the  provisions 
relating  to  natural  children  apply  also  to  adopted  children.  In  the  act 
for  houses  of  correction  employees,  the  mother  of  a  deceased  con- 
tributor, if  no  eligible  widow  or  children  survive,  receives  a  pension 
of  $600  as  long  as  she  lives. 

Some  instances  of  similar  provisions  in  the  laws  of  other  states 


are: 


FIREMEN. 


State  and  city. 


Amount  of  pension,  and  conditions  for  pension. 


California  (Oakland). 


Iowa  (mandatory  on  cit- 
ies having  a  paid  de- 
partment ;  permissive 
on  cities  having  an  or- 
ganized department). 

Kentucky  (all  first-class 
cities). 

Ohio  (Dayton). 

Ohio    (Cleveland). 

Pennsylvania  (Philadel- 
phia). 

Texas    (state-wide). 

Wisconsin  (state-wide; 
Milwaukee). 


If  death  occurs  in  line  of  duty,  dependent  parents  re- 
ceive one-half  of  annual  salary  at  time  of  death,  if 
no  eligible  widow  or  children  survive.  If  death  occurs 
from  natural  causes,  after  10  years  of  service,  they 
receive  $1,000,  if  no  eligible  widow  or  children  sur- 
vive. 

Dependent  father  or  mother  receives  $20  monthly,  if 
no  eligible  widow  or  children  survive,  if  death  occurs 
in  line  of  duty. 

Dependent  father   and   mother  receive   $30   monthly,   if 

member  was  unmarried  and  childless. 
Dependent  parents   receive   $25   monthly,   if  no   eligible 

widow  or  children  survive. 
Dependents  receive  annuities  of  $60   to   $300   according 

to  length  of  service  of  member. 
Dependent   parents   receive   $20   annually,   if  no   widow 

survives. 

Dependents  receive   $144   annually. 
Dependents  receive  $420  to  $720  annually,  according  to 

rank  of  member. 


71 


State  and  city. 


POLICEMEN— Concluded. 


Amount  of  pension,  and  conditions  for  pension. 


California  (Oakland). 


Colorado  (cities  over  100,- 
000). 

Colorado    (Denver). 


Connecticut  (New  Ha- 
ven). 

Indiana  (all  first-  and  sec- 
ond-class cities,  and  all 
other  cities  accepting). 

Iowa   (state-wide). 

Kentucky    (all    first-class 

cities). 
New  Jersey   (Newark). 

Oregon     (all    cities    over 

Wisconsin  (all  second- 
and  third-class  cities). 


If  member  was  killed  in  line  of  duty,  dependent  parents 
receive  one-half  of  salary  at  time  of  death,  if  no  eli- 
gible widow  or  children  survive.  If  death  occurred 
from  natural  causes,  after  10  years  of  service,  they 
receive  $1,000,  if  no  eligible  widow  or  children  sur- 
vive. 

Dependent  father  and  mother  each  receive  $15  monthly, 
if  no  eligible  widow  or  children  survive ;  if  either 
parent  is  dead,  the  other  receives  $30. 

If  member  was  killed  in  line  of  duty,  his  mother  and 
father  each  receive  $6  monthly  (monthly  pensions  also 
to  widow  and  children). 

Widow  or  dependents  receive  sum  not  exceeding  $2,000. 

If  no  eligible  widow  or  children  survive,  other  depend- 
ents receive  $20  monthly. 

Dependent  parents  receive  $20  monthly,  if  no  eligible 
widow  or  children  survive. 

Dependent  parents  receive  $30  monthly,  if  no  eligible 
widow  or  children  survive. 

Widow  or  dependents  receive  one-half  of  salary  of  mem- 
ber at  time  of  death. 

Widow  or  other  dependents  receive  not  more  than  one- 
third  of  annual  salary  at  time  of  death  of  member. 

Dependent  parents  receive  widow's  share  of  pension  if 
no  eligible  widow  or  children  survive. 


ADDITIONAL   DATA. 

In  no  fund  in  Illinois  is  the  financial  condition  of  applicant  to  be 
taken  into  consideration  in  granting  a  pension.  Thus,  in  this  State  it 
seems  to  be  recognized  as  a  principle  that  a  pension  is  a  reward  for 
service  rendered.  Under  the  firemen's  and  policemen's  acts  in  the 
state  of  Alabama,  a  pension  can  not  be  awarded  to  one  possessing 
independent  means  of  livelihood,  but  in  no  other  instance  in  the  United 
States  is  there  a  condition  imposed  regarding  the  need  of  the  indi- 
vidual for  pension. 

Provisions  regulating  the  investment  of  funds  appear  in  all  the 
acts.  In  four  instances — namely,  in  the  firemen's,  the  fire  insurance 
patrolmen's,  the  public  school  employees'  and  the  public  library  em- 
ployees' acts — the  funds  may  be  invested  at  the  discretion  of  the 
board.  In  all  other  cases  they  must  be  invested  in  certain  specified 
classes  of  securities. 

In  the  case  of  the  policemen's  fund  of  Chicago,  provision  is  made 
for  an  actuarial  determination  each  year  of  the  amount  needed  to  pay 
pensions  currently  and  to  provide  a  reserve  on  all  entering  the  service 
after  January  1,  1916.  This  is  the  only  fund  for  which  such  a  pro- 
vision is  made. 


CHAPTER  V. 


ACTUARIAL  REPORT. 

GENERAL  INTRODUCTION. 

An  actuarial  investigation  of  the  future  costs  of  operating  a 
pension  system  may  be  based  either  on  statistical  data  collected  from 
the  experience  of  the  particular  fund  to  be  examined,  or  it  may  be 
based  on  certain  reasonable  assumptions  made  as  the  result  of  experi- 
ence with  groups  of  persons  somewhat  similar  to  those  involved  as 
participants  in  the  pension  fund.  In  so  far  as  the  experience  of  a 
particular  fund  is  adequate  to  justify  conclusions,  it  is  highly  desirable 
that  the  actuarial  results  rest  on  rates  of  withdrawal  and  rates  of 
retirement  on  pensions  given  by  that  experience.  At  least,  this  is  the 
position  taken  in  the  present  investigation. 

Of  the  several  funds  in  this  State,  three,  by  reason  of  the  num- 
bers of  employees  involved  and  the  lengths  of  time  since  the  laws 
were  enacted,  offer  an  experience  sufficient  to  enable  us  to  predict 
future  costs  relating  to  them  almost  entirely  on  the  basis  of  statistical 
data  from  their  own  experience.  They  are  the  firemen's  fund  of 
Chicago,  the  police  fund  of  Chicago  and  the  Chicago  school  teachers' 
fund.  In  what  follows  these  are  considered  in  detail,  and  in  each  case 
there  are  presented  monetary  tables  showing  the  amounts  that  may  be 
expected  to  be  paid  each  year  if  the  present  plans  of  payment  be  con- 
tinued; and  valuation  sheets  exhibiting  statements  of  assets  and  lia- 
bilities as  of  January  1,  1916. 

The  investigation  of  the  fund  for  municipal  employees  of  Chi- 
cago could  be  based  only  to  a  slight  degree  on  the  experience  of  this 
fund  for  two  reasons : 

1.  No  pensions  were  paid  until  July  1,  1916.    There  was  thus  no 
pension  experience  on  January  1,  1916,  and  consequently,  there  were 
no  means  of  determining  the  rates  at  which  employees  would  accept 
pensions  under  this  fund. 

2.  Tables  of  withdrawals  by  reason  of  resignation  in  a  service, 
compiled  from  an  experience  before  a  pension  system  was  fully  in 
operation,  might  not  give  even  a  fair  indication  as  to  the  future  expe- 
rience of  the  same  service  in  this  particular  after  a  pension  system  was 
established. 

In  this  fund,  therefore,  we  prepared  a  table  giving  the  rates  of 
withdrawal  from  service,  and  by  assuming  that  pensions  would  be 
paid  at  certain  specified  ages  to  those  having  the  required  service 
qualifications,  we  have  prepared  different  balance  sheets  showing  the 
present  condition  of  the  fund  under  our  specified  hypotheses.  It  must 
be  remembered,  however,  that  the  same  confidence  should  not  be 
placed  in  these  results  as  predictions  of  the  future  costs  as  should  be 


73 

placed  in  those  under  the  Chicago  firemen's,  the  Chicago  policemen's 
and  the  Chicago  teachers'  funds. 

The  State  teachers'  pension  and  retirement  fund  involves  a  vast 
body  of  employees,  but  owing  to  the  absence  of  records  in  anything 
like  suitable  form,  the  construction  of  a  table  giving  entrance  and 
withdrawal  experience  was  out  of  the  question  in  the  limited  time  at 
our  disposal  for  preparing  this  report.  Indeed,  it  is  doubtful  if  any 
experience  table  could  be  constructed  from  the  records  as  they  ex- 
isted at  the  time  the  act  went  into  force,  and  moreover,  it  is  doubtful  if 
any  satisfactory  actuarial  investigation  can  be  made  of  this  fund  until 
some  plan  is  instituted  for  accumulating  the  required  data  from  year 
to  year. 

Briefly  stated,  our  treatment  of  this  fund  was  as  follows : 

We  scheduled,  as  far  as  we  could  secure  data,  the  teachers  in 
service  on  January  1,  1916,  according  to  salaries,  ages,  and  years  of 
experience ;  and,  on  the  supposition  that  teachers  would  accept  pen- 
sions under  certain  conditions,  as  given  in  our  discussion  of  that  fund, 
we  arrived  at  our  results.  These  are  offered  as  an  estimate  of  the 
probable  future  cost  of  this  fund,  but  one  which  would  probably  differ 
materially  from  actual  results. 

The  remaining  funds,  because  of  the  small  number  of  employees 
involved,  do  not  offer  an  experience  of  sufficient  volume  to  warrant 
us  in  making  any  actuarial  investigation  of  them. 

NECESSITY   FOR   SEPARATE  REPORT   ON   EACH    FUND. 

Since  the  conditions  for  retirement  and  the  benefits  offered  in 
the  nature  of  pensions  differ  widely  for  the  various  funds,  we  are 
obliged  to  make  a  separate  report  on  each  fund  investigated,  in  order 
to  give  an  idea  of  the  probable  future  cost  of  maintaining  such  a 
fund. 

PLAN   FOLLOWED  IN  DETERMINATION   OF   FUTURE   COSTS. 

The  determination  of  future  costs  was  made  in  each  case,  as  far 
as  possible,  from  past  experience  in  the  operation  of  the  fund.  In 
each  instance  we  gathered  data  to  show  the  effect  of  the  various  ele- 
ments that  are  operating  to  increase  or  decrease  the  resources  of  the 
fund.  As  far  as  this  experience  was  adequate  to  determine  the  rates 
at  which  changes  were  taking  place,  it  was  used  in  our  computations. 
When  it  was  inadequate,  we  drew  upon  the  experience  of  some  similar 
fund  that  had  been  investigated  and  had  an  adequate  experience. 
References  to  these  sources  will  appear  in  the  proper  places. 

DATA  REQUIRED  FOR  DETERMINATION  OF  FUTURE  COSTS. 

For  each  fund  it  was  necessary  to  find  the  following  data : 

1.  The  rate  of  mortality  in  the  active  force  at  given  ages. 

2.  The  rates  of  withdrawal  by  resignation  or  dismissal  at  given 
ages. 

3.  The  rates  of  retirement  on  disability  pensions  at  given  ages. 

4.  The  rates  of  service  retirement  at  given  ages. 

5.  The  rates  of  mortality  among  disability  pensioners  at  given 
ages. 

6.  The  rates  of  mortality  among  service  pensioners  at  given  ages. 


74 

For  certain  funds,  such  as  those  of  the  policemen  and  firemen,  it 
was  necessary  to  know,  in  addition,  the  following : 

7.  The  probability  of  death  in  the  discharge  of  duty. 

8.  The  probability  that  a  man  dying  at  a  given  age  will  leave  a 
widow,  and  the  probable  age  of  such  widow. 

9.  The  rates  of  mortality  of  widows  on  the  pension  roll. 

10.  The  rates  of  withdrawal  of  widows  from  pension  by  remar- 
riage. 

11.  The  average  length  of  time  a  service  pensioner  of  given  age 
has  been  on  the  pension  roll. 

12.  The  number  and  ages  of  children  per  member  of  given  age. 

13.  The  rates  of  mortality  of  children  under  16  years  of  age. 

14.  The  probable  rates  of  salary  increase  with  respect  to  ages. 

15.  The  probable  amounts  of  pensions  under  given  conditions. 

16.  The  probability  that  a  man  of  given  age  in  active  service  has 
been  in  service  10  years. 

17.  The  probability  that  a  man  of  given  age  in  active  service  has 
been  in  service  20  years. 

GENERAL  STATEMENT  AS  TO  COLLECTION  OF  DATA. 

To  obtain  the  information  necessary  to  determine  the  above- 
mentioned  rates  and  probabilities,  we  fixed  on  certain  dates  on  which 
to  begin  and  terminate  the  collection  of  data.  In  the  cases  of  the 
funds  for  Chicago  firemen,  Chicago  policemen,  and  Chicago  teachers, 
the  date  of  beginning  was  January  1,  1906,  and  of  ending  was  January 
1,  1916.  In  the  fund  for  municipal  employees  of  Chicago,  the  data 
was  collected  from  July  1,  1911,  the  date  of  inception  of  the  fund, 
to  January  1,  1916. 

We  then  prepared  five  sets  of  questionnaires:  One  for  those 
employees  who  were  in  active  service  January  1,  1916 ;  one  for  former 
employees  who  were  on  the  pension  roll  January  1,  1916;  one  for 
widow  pensioners  on  the  roll  January  1,  1916 ;  one  for  employees  who 
were  in  service  at  date  of  beginning  our  accumulation  of  data,  or  at 
any  time  thereafter  before  January  1,  1916,  but  retired  from  service 
prior  to  January  1,  1916,  for  reason  other  than  by  pension;  one  for 
those  who  were  on  pension  at  date  of  beginning  our  accumulation  of 
data,  or  any  time  thereafter  previous  to  January  1,  1916,  but  were  not 
on  the  pension  roll  on  January  1,  1916. 

A  copy  of  the  questionnaire  prepared  for  those  employees  who 
were  in  active  service  January  1,  1916,  is  given  on  pp.  75-76. 


75 


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77 

In  the  cases  of  the  funds  for  Chicago  firemen  and  Chicago  police- 
men, the  questionnaires  relating  to  those  in  service  January  1, 
1916,  were  delivered  to  the  chiefs  of  the  respective  departments 
and  were  distributed  to  the  employees  through  the  regular  chan- 
nels of  communication  of  these  departments.  Those  for  the  Chi- 
cago teachers'  fund  were  delivered  to  the  several  principals  by 
means  of  the  supply  wagons  of  the  Board  of  Education  and  were 
returned  to  our  office  either  by  the  supply  wagons  or  by  mail. 
Those  for  the  municipal  employees'  fund  were  distributed  and"  col- 
lected by  the  Finance  Committee  of  the  Chicago  City  Council. 

The  data  on  public  school  teachers,  outside  the  county  of  Cook 
and  city  of  Peoria,  was  collected  through  the  several  county 
superintendents  from  the  applications  for  renewal  of  license  filed 
by  the  teachers  in  the  offices  of  these  superintendents.  In  the  county 
of  Cook  no  such  application  was  necessary;  therefore,  to  get  the 
desired  information  on  teachers  in  this  county,  outside  of  Chicago, 
cards  were  mailed  to  the  individual  teachers.  Cards  were  also 
mailed  to  the  individual  teachers  of  Peoria. 

The  questionnaires  referring  to  pensioners  and  widows  on  the 
pension  rolls  January  1,  1916,  were,  in  the  case  of  the  Chicago  po- 
lice fund,  filled  in  from  the  records  in  the  Police  Pension  Depart- 
ment. In  no  other  instance  were  the  records  complete  enough 
to  afford  us  the  proper  data,  and  consequently  we  had  these  sheets 
filled  in  by  the  pensioners,  either  when  they  called  to  receive  their 
checks  or  by  mail. 

The  sheets  applicable  to  those  who  were  not  in  service  or  on 
the  pension  rolls  January  1,  1916,  were  filled  in  by  our  own  em- 
ployees. As  far  as  the  information  sought  was  available,  it  was 
transcribed  from  the  records  of  the  several  departments.  In  many 
instances,  however,  the  date  of  birth  or  date  of  entrance  into  serv- 
ice was  missing,  and  for  one  or  the  other  of  these  items  of  infor- 
mation, reference  was  made  to  application  sheets  on  file  in  the  offi- 
ces of  the  Civil  Service'  Commission,  to  the  Department  of  Vital 
Statistics  and  to  reports  cited  in  the  minutes  of  the  Chicago  City 
Council. 

The  data  thus  derived  was  transformed  in  the  form  of  a  code 
to  cards,  a  sample  of  which  is  shown  on  page  78.  The  trans- 


78 


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79 

ference  was  made  by  punching  certain  numbers  on  these  cards  by 
means  of  the  Powers  punching  machine. 

After  the  cards  were  punched,  they  were  taken  to  the  Chicago 
city  hall  and  there  sorted  on  the  Powers  sorting  machine.  The 
results  were  then  tabulated- 

DIFFICULTIES    ENCOUNTERED    IN    COLLECTING   DATA    FOR    INVESTIGATION 

OF   FUNDS. 

Iii  no  cases  were  the  records  relating  to  the  funds  kept  in  such 
condition  as  to  make  possible  an  investigation  of  the  experience 
of  the  fund  for  the  period  chosen,  without  reference  to  outside 
sources.  In  the  Chicago  police  fund,  the  records  were  complete 
for  such  an  investigation,  with  the  exception  of  part  of  the  data 
on  those  who  died  while  in  retirement  on  pension  during  the  early 
years  of  the  10-year  period  chosen.  In  the  Chicago  firemen's  fund, 
practically  the  only  records  kept  were  those  giving  receipts  and 
disbursements  under  the  fund,  and  had  it  not  been  for  the  active 
cooperation  of  all  interested  in  this  fund,  both  those  in  active 
service  and  on  pension,  an  actuarial  investigation  would  have  been 
impossible.  In  the  municipal  employees'  fund,  the  records  were  in 
a  satisfactory  condition  considering  the  fact  that  payment  of  pen- 
sions began  only  on  July  1,  1916,  and  that  there  was  almost  end- 
less detail  involved  in  establishing  the  period  of  service  that  would 
count  toward  pension  in  the  cases  of  some  of  the  older  employees. 
At  the  time  we  drew  off  the  data,  however,  the  records  were  not 
complete. 

In  the  Chicago  teachers'  fund,  the  information  sought  on  those 
who  were  no  longer  in  the  service  on  January  1,  1916,  and  on 
those  in  service  on  that  date  who  had  not  filed  their  sheets  with 
us  (the  latter  class  comprising  about  40  per  cent  of  the  teachers) 
was  obtained  from  the  cards  and  records  in  the  offices  of  the  Board 
of  Education.  This  was  a  matter  of  extreme  difficulty,  complicated 
because  of  the  change  in  name  when  a  female  teacher  married  and 
remained  in  service.  We  exercised  as  great  care  as  possible  in  get- 
ting this  data  correct  and  used  every  means  at  our  disposal  to 
crosscheck  on  our  work,  so  as  to  avoid  duplicate  sheets  on  the 
same  individual.  Although  we  can  not  hope  that  our  inforina- 
tion  is  as  accurate  as  in  the  cases  of  the  Chicago  police  fund  and 
Chicago  firemen's  fund,  where  some  99  per  cent  of  those  in  active 
service  filed  sheets  with  us,  nevertheless  we  believe  that  whatever 
inaccuracy  may  have  crept  in  will  not  affect  our  results  materially. 

PLAN  OF  INVESTIGATION  OF  FUND. 

The  plan  of  the  investigation  of  each  fund  will  unfold  itself 
as  we  proceed  with  the  discussion.  The  plan  of  exhibiting  our 
monetary  tables,  however,  is  common  to  all  funds  on  which  we 
are  able  to  render  a  complete  report,  and  consists  of  two  parts: 
one,  a  yearly  valuation,  showing  the  amounts  per  year  that  may 
be  expected  to  be  paid  in  pensions  if  the  present  plans  continue ; 
and  the  other,  called  a  balance  sheet,  exhibiting  what  is  ordinarily 
known  as  a  valuation,  giving  under  assets  the  amount  in  the  fund 
and  the  present  values  of  all  the  items  of  income  that  are  guaran- 


80 

teed  to  accrue  to  the  fund,  and  under  liabilities  the  present  values 
of  expected  future  pension  payments  to  pensioners  of  the  fund, 
January  1,  1916,  and  to  those  at  that  time  in  active  service  when  they 
become  pensioned,  together  with  eligible  dependents. 

The  balance  sheets  are  not  concerned  with  costs  for  future  en- 
trants, but  with  costs  due  to  present  pensioners  and  to  the  members 
of  the  active  service  January  1,  1916. 

REASON  FOR  TABLE  GIVING  YEARLY  VALUATION. 

Ordinarily  the  balance  sheet  would  be  sufficient  in  considering 
the  question  of  the  condition  of  the  fund,  as  it  would  show  either  the 
amount  in  surplus  to  the  credit  of  the  fund  after  all  liabilities  were 
accounted  for,  if  the  fund  was  in  a  solvent  condition,  under  the  plan 
of  pension  payment  adopted;  or  it  would  show  the  extra  amount,  for 
the  raising  of  which  provision  must  be  made  if  the  fund  would  remain 
solvent,  in  the  case  that  sufficient  funds  were  not  being  accumulated. 

Such  a  solution,  however,  would  not  indicate  what  amount  the 
employing  body  must  expect  to  provide  annually  to  meet  pension 
payments,  and  as  it  appeared  to  us  that  this  information  would  be  im- 
portant, in  order  to  enable  all  persons  concerned  to  know  the  financial 
demands  per  year,  we  have,  at  the  expense  of  an  immense  amount  of 
labor,  presented  tables  showing  this  yearly  cost. 

RATE  OF  INTEREST  ASSUMED  IN  THE  BALANCE  SHEET. 

In  preparing  a  balance  sheet  such  as  is  shown  in  the  police  fund 
in  Table  XVI,  p.  103,  and  in  determining  the  percentages  of  salaries 
that  would  have  to  be  deducted  if  future  entrants  were  to  pay  for 
their  own  pensions  by  direct  contributions,  it  is  necessary  to  as- 
sume a  rate  of  interest  to  be  used  in  finding  the  present  values  of 
assets  and  liabilities.  It  is  desirable  to  select  a  rate  which  is  suf- 
ficiently high  to  provide  for  the  employees  a  fair  return  on  their 
investment  and  which  at  the  same  time  is  not  in  excess  of  what 
the  fund  could  reasonably  be  expected  to  earn  over  a  long  period. 
The  rate  of  4  per  cent,  compounded  annually,  is  adopted  for  this 
valuation,  as  it  is  thought  that  this  could  be 'earned  in  view  of  the 
present  and  prospective  rates  on  long  term  city,  municipal  or  state 
bonds. 

THE    TREATMENT    IN    THE    BALANCE    SHEET    OF    SOURCES    OF    REVENUE 
OTHER  THAN  EMPLOYEES'   CONTRIBUTIONS. 

In  the  balance  sheets  we  have  listed  among  the  assets  the  present 
values  of  only  those  amounts  which  are  guaranteed  permanently.  Thus, 
the  seven-tenth  mill  tax  for  the  police  fund,  the  three-tenth  mill  tax 
for  the  firemen's  fund,  and  the  tax  of  an  amount  equal  to  the  amount 
paid  in  by  the  employees  during  the  previous  calendar  year  in  the 
fund  for  municipal  employees  of  Chicago,  being  of  a  temporary  na- 
ture, are  not  included  in  assets.  On  the  other  hand  the  payment  by 
the  city  of  Chicago  of  an  amount  equal  to  the  amount  contributed 
by  the  teachers  to  the  Chicago  teachers'  fund  is  guaranteed  without 
limitation  of  time,  and  consequently  its  present  value  is  included  in 
the  assets  in  the  balance  sheet  of  that  fund. 

In  comparing  the  balance  sheets  of  these  four  funds,  it  must 
therefore  be  borne  in  mind  carefully  that  the  amounts  to  be  provided 


81 

from  sources  other  than  contributions  from  salaries  of  employees,  are, 
in  the  cases  of  the  three  funds  first  mentioned,  the  present  values  of 
the  total  provisions  from  all  these  other  sources ;  whereas,  in  the  case 
of  the  Chicago  teachers'  fund,  the  present  value  of  the  amount  that 
must  be  provided  from  other  sources  is  the  provision  that  must  be 
made  over  and  above  the  present  payment  by  the  city  of  an  amount 
equal  to  the  amount  contributed  by  the  teachers. 

PREDICTED  COSTS   MAY   NOT   COINCIDE  WITH   ACTUAL   COSTS. 

Our  investigations  assume,  of  necessity,  that  the  entrance  on 
pension  is  at  a  uniform  rate  within  any  given  year.  This  is  not 
what  will  probably  actually  occur,  and  when  it  does  not,  pre- 
dicted costs  may  be  realized  a  few  months  before  or  after  the  time 
indicated  in  our  tables.  The  assumption,  however,  can  lead  to  ho 
error  of  practical  importance. 

GROWTH   OF   CITY    NOT   CONSIDERED. 

In  our  investigations  we  have  not,  in  the  case  of  any  fund, 
taken  into  account  the  probable  future  growth  of  the  city.  Our 
reasons  for  this  are  twofold : 

1.  The  cost  of  providing  pensions  for  those  who  would  join 
the   service   to   fill   the  need   for  an   increasing  body   of   employees 
required  by  an  increasing  population,   would   necessarily   be,   on 
the  average,  the  same  per  entrant  as  the  cost  of  providing  pensions 
for  those  who  entered  the  service  to  maintain  it  at  its  present  size. 

2.  No  assumption  could  be  made,  upon  which  all  would  agree. 

REPORTING  VALUES  OF  THE  EXPECTATION  TO  THE  NEAREST  DOLLAR. 

It  will  be  observed  in  all  our  tables  showing  costs  by  years, 
that  we  have  reported  near  the  ends  of  certain  columns  some 
numbers  smaller  than  any  pension  paid.  Such  numbers  merely 
signify  the  calculated  value  of  the  expectation.  We  give  the  val- 
ues of  expectations  out  to  the  last  dollar,  even  when  amounts  run 
into  hundreds  of  thousands,  or  even  millions,  of  dollars.  Thus  in 
the  Chicago  police  fund,  we  report  $2,209,233  as  the  value  of  the 
ultimate  normal  expectation  of  pensions  per  year.  The  last  three 
figures — namely,  233 — of  this  number  have  no  practical  importance, 
except  to  indicate  that  we  have  calculated  the  value  instead  of 
estimating  it. 

THE  POLICE  FUND  OF  CHICAGO. 

THE   BENEFITS. 

The  following  outline  gives  briefly  a  notion  of  the  benefits: 
To  Employees. 

No  pension  is  less  than  $600  nor  more  than  $900. 

Service  pensions  within  these  limits: 

Pension  of  one-half  of  salary  attached  to  rank  held  for  at 
least  one  year  immediately  prior  to  retirement  is  paid  to  all  who 
choose  to  retire  after  20  years  of  service. 

Disability  pensions : 


82 

Pension  of  one-half  of  final  salary  is  awarded  without  service 
requirement,  if  disability  occurs  when  in,  and  in  consequence  of,  the 
performance  of  duty.  Pension  ceases  when  disability  ceases. 

To  Widows  of  Employees. 

Widow  whose  husband  was  retired  on  service  pension,  provided 
marriage  took  place  at  least  six  months  before  retirement,  receives 
pension  of  deceased  husband. 

Widow  whose  husband  was  retired  on  disability  pension,  pro- 
vided marriage  took  place  before  date  of  retirement,  receives  pension 
of  deceased  husband. 

Widow  whose  husband  lost  his  life  in  performance  of  duty — also 
widow  whose  husband  died  from  any  cause  while  in  service  after  10 
years  of  service,  receives  a  pension  of  one-half  salary  of  rank  held  by 
husband  for  one  year  immediately  prior  to  death,  but  in  no  case  less 
than  $600  nor  more  than  $900. 

To  Other  Dependents  of  Employees. 

In  all  the  following  cases  each  family  receives  an  amount  equal  to 
the  pension  provided  for  deceased  father  or  the  mother,  to  be  divided 
equally  among  the  children  under  16  years  of  age: 

Children  of  service  pensioner,  if  no  widow  survives  or  surviving 
wid©w  is  ineligible  because  of  date  of  marriage  to  former  pensioner; 
children  of  disability  pensioner,  if  no  widow  survives  or  if  widow 
marries;  children  of  policeman  killed  in  performance  of  duty,  if  no 
widow  survives ;  children  of  policeman  who  dies  from  any  cause  after 
10  years  of  service. 

Explanatory  Note. 

The  following  tables,  I-III,  pp.  83,  84 ;  give  a  sort  of  summary  of 
the  results  of  the  tabulations  from  the  actual  experience.  This 
data  is  needed  to  determine  rates  at  which  certain  changes  are 
taking  place.  In  order  to  save  space,  we  can  show  our  plan  only 
in  the  form  of  a  very  general  outline  with  details  omitted. 

DETERMINATION   OF   RATES   OF   CHANGES   ON   WHICH    COST   OF   PENSIONS 

DEPENDS. 

From  the  experience,  as  outlined  in  Tables  I-III,  we  proceeded 
to  prepare  for  the  various  ages,  the  rates  of  mortality,  rates  of 
withdrawal  from  the  service,  rates  of  disability  retirements,  rates 
of  service  retirements  and  such  probabilities  as  were  needed  to 
solve  the  problem  of  determining  future  costs. 

For  this  purpose,  we  formed  exposure  tables  which  indicate 
the  amount  of  service  that  has  been  rendered  at  given  ages  and 
what  occurred  with  respect  to  number  of  deaths,  retirements  and 
withdrawals  at  such  ages.  The  actual  rates  were  then  graduated 
into  regular  sequence.  These  results  are  given  in  Table  IV,  p.  85. 

To  illustrate  the  meaning  of  these  numbers,  take  for  in- 
stance a  number  such  as  0.0262  in  Column  (2)  opposite  age  28. 
This  number  means  that  at  age  28,  withdrawals  by  resignation 


83 


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TABLE  II— (Chicago  Policemen). 
ACTUAL,  EXPERIENCE  WITH  SERVICE  PENSIONERS. 


(1) 

(2) 

(3) 

(4) 

(5) 

(6) 

(7) 

(8) 

g 

^ 

Survivors  of  Jan.  1, 
1906,  still  on  roll 
Jan.  i,  1916,  with 
ages  as  of  Jan.  1, 
1906. 

Deaths  among  sur- 
vivors of  1906,with 
ages  at  death. 

Returns  to  service 
of  survivors  of 
Jan.  1,  1906.  with 
ages  at  return. 

Entrants  to  pension 
still  on  roll  Jan.  1, 
1916,  with  ages  at 
entrance. 

Deaths  among  en- 
trants to  pension, 
with  ages  at 
death. 

Returns  to  service 
of  entrants  on 
pension,  with  ages 
at  return. 

^&~ 

2*9 

c®^ 
si's 

8-1 

I  §lg 

*H>ri2 
N 

39.... 

1 

40  

41  

o 

42  

o 

43  

o 

3 

1 

3 

44  

o 

1 

45  

1 

2 

2 

46  

2 

0 

0 

g 

2 

2 

9 

Etc. 

Detail  for 

each  age. 

Totals.... 

76 

66 

1 

479 

106 

18 

555 

TABLE  III— (Chicago  Policemen). 
ACTUAL  EXPERIENCE  WITH  DISABILITY  PENSIONERS. 


(1) 

(2) 

(3) 

(4) 

(5) 

(6) 

(7) 

(8) 

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0 

1 

1 

34  

o 

o 

35  

1 

1 

o 

Q 

36  

o 

o 

o 

1 

o 

o 

Etc. 

Detail  for 

each  age. 

"Totals.... 

19 

17 

2 

27 

14 

1 

46 

or   dismissal   are   at   the   rate   of   2.62   per  year   per   100   men   of 
that  age  on  the  force. 

In  dealing  with  the  probable  future  cost  for  widows,  we 
needed  to  know  what  the  probabilities  are  that  men  of  various  classes 
and  ages  will  leave  widows  eligible  to  a  pension.  For  this  purpose, 
we  calculated  the  probability  that  a  man  dying  at  a  given  age  will 
leave  a  widow,  the  probability  that  a  man  dying  in  active  service 
will  have  had  at  least  10  years  of  service,  and  the  probability  that 
a  man  dying  in  active  service  will  have  had  at  least  20  years  of 
service.  These  results  are  also  given  in  Table  IV,  p.  85. 


85 


TABLE  IV— (Chicago  Policemen). 


(1) 

(2) 

(3) 

(4) 

(5) 

(6) 

(7) 

(8) 

(9) 

(10) 

1 

J3  ^2 

551 

<*-,O  »-i 
0«° 

rt  a 

"»  *  O 

w  «J'£~ 

rt£a2 

DJ 

>.  0   1- 

Sc" 

S^H 

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u/3  ri  fi 
0^°* 

•   SS 

£«2.a 

rt  0««-iti 

H 

.JL.4-1 

s« 

Sc 

IliEj 

<u 

10  s 

*%>>  . 
«3£ 

SSs 

rt  ^-0 
H 

g 

L 

•  "g 

«4-l  fl 

°§ 
03  IH 

|l 

t 

g 
H 

C/2   C 

u_.  4) 

°0 
|£ 
rt'-t-i 

H 

SSSog 

9t*ml 

Lt  t->        <U  0) 

O  t>  P  2  • 

B"5g® 

ogffg 

Sill! 

pjrtftQ^ 
H 

*S 
SS 

2  v 

z* 

5-Sfc 

gss 

2SS 
2S* 
G 

ri^-aaj   . 
*->  o  rt  «  a, 
rt  eta  2  u 
5c    S'£ 

I9|SS 

1§SH 

pill 

cj^-a  y  . 
*%%o% 

5.s.E> 

!»l*i 

Ism 

.a^"      M 
ri  a      £  l- 

P  5  <u  j  ;  «» 
2S£2£ 

PH 

22... 

0.0573 

0.00337 

23 

0  0450 

0  00357 

24 

0  0350 

0  00375 

25 

0  0318 

0  00392 

0  00040 

0.400 

26 

0  0288 

0  00409 

0  00048 

0  460 

27 

0  0275 

0  00426 

0  00054 

0.520 

28 

0  0962 

0  00443 

0  00058 

0.568 

29 

0  0247 

0  00461 

0  00060 

0.606 

30 

0  0232 

0  00479 

0  00062 

0  644 

31 

0  0220 

0  00497 

0  00062 

0  0005 

0.680 

0.014 

32 

0  0203 

0  00515 

0  00064 

0  0005 

0  713 

0  040 

33 

0  0190 

0  00540 

0.00064 

0  0006 

0.741 

0.070 

34 

0  0173 

0  00566 

0  00066 

0  0006 

0  766 

0  096 

35 

0  0160 

0  00600 

0  00066 

0  0007 

0.790 

0.125 

36 

0  0142 

0  00645 

0  00066 

0  0008 

0  810 

0  155 

37 

0  0131 

0  00695 

0  00066 

0  0008 

0.827 

0.190 

38 

0  0110 

0  00750 

0  00068 

0  0009 

0  838 

0  240 

0.008 

39  . 

0  0090 

0  00800 

0  00069 

0  0010 

0.845 

0.315 

0.016 

40 

0  0075 

0  00856 

0  00070 

0  0011 

0  849 

0  415 

0  027 

41.... 
42.... 
43.... 
44.... 
45.... 
46.... 
47.... 
48.... 
49.... 
50.... 
51.... 
52.... 
53.... 
54.... 
55.... 
56.... 
57.... 
58.... 
59.... 
60.... 
61  

0.0058 
0.0044 
0.0037 
0.0032 
0.0029 
0.0028 
0.0027 
0.0026 
0.0025 
0.0025 
0.0025 
0.0025 
0.0025 
0.0025 
0.0025 
0.0025 
0.0025 
0.0025 

0.00920 
0.00980 
0.01050 
0.01130 
0.01220 
0.01320 
0.01425 
•    0.01565 
0.01710 
0.01870 
0.02030 
0.02200 
0.02370 
0.01580 
0.02840 
0.03080 
0.03330 
0.03570 
0.03810 
0.04060 
0  04320 

0.00071 
0.00073 
0.00075 
0.00077 
0.00081 
0.00087 
0.00093 
0.00094 
0.00095 
0.00096 
0.00097 
0.00098 
0.00099 
0.00099 
0,00100 
0.00090 
0.00060 
0.00010 

0.0011 
0.0012 
0.0012 
0.0013 
0.0013 
0.0013 
0.0014 
0.0014 
0.0015 
0.0016 
0.0016 
0.0017 
0.0019 
0.0017 
0.0016 
0.0015 
0.0014 
0.0012 
0.0010 
0.0008 
0  0007 

0.0010 
0.0028 
0.0046 
0.0064 
0.0082 
0.0100 
0,0125 
0.0150 
0.0185 
0.0246 
0.0310 
0.0375 
0.0446 
0.0520 
0.0595 
0.0680 
0.0776 
0.0850 
0.0940 
0.1035 
0  1134 

0.0380 
0.0380 
0.0382 
0.0384 
0.0385 
0.0388 
0.0390 
0.0395 
0.0400 
0.0405 
0.0410 
0.0418 
0.0425 
0.0433 
0.0442 
0.0450 
0.0462 
0.0475 
0.0488 
0.0500 
0  0515 

0.853 

0.855 
0.858 
0.859 
0.860 
0.860 
0.860 
0.861 
0.861 
0.862 
0.861 
0.860 
0.859 
0.858 
0.855 
0.850 
0.848 
0.845 
0.842 
0.840 
0  835 

0.535 
0.654 
0.765 
0.873 
0.906 
0.930 
0.946 
0.960 
0.974 
0.982 
0.988 
0.990 
0.990 
0.990 
0.990 
0.990 
0.990 
0.990 
0.990 
0.990 
0  990 

0.045 
0.071 
0.107 
0.162 
0.235 
0.329 
0.416 
0.505 
0.595 
0.677 
0.738 
0.788 
0.822 
0.845 
•    0.861 
0.872 
0.882 
0.890 
0.896 
0.902 
0.908 

62.... 
63.... 
64 



0.04590 
0.04900 
0  05220 



0.0006 
0.0005 
0  0004 

0.1250 
0.1375 
0  1505 

0.0530 
0.0547 
0  0565 

0.833 
0.829 
0  825 

0.990 
0.990 
0  990 

0.914 
0.920 
0  926 

65.... 
66 

0.05550 
0  05890 



0.0002 

0.1640 
0  1785 

0.0583 
0  0605 

0.821 
0  817 

0.990 
0  990 

0.932 
0  938 

67  

0  06240 

0  1950 

0  0625 

0  893 

0.990 

0.944 

68 

0  06600 

0  2015 

0  0648 

0  810 

0  990 

0.950 

69  

0  06970 

0  2245 

0  0670 

0  805 

0  990 

0.956 

70 

0  07350 

0  2396 

0  0700 

0  800 

0  990 

0.962 

71  

0  07740 

0  2575 

0  0728 

0  795 

0.990 

0.968 

72.. 

0  08140 

0  2745 

0  0760 

0  790 

0  990 

0.974 

73 

0  08560 

0  29 

0  0800 

0  785 

0  990 

0  980 

74.. 

0  09000 

0  32 

0  0850 

0  780 

0  990 

0.986 

75.... 

0.09460 

0  36 

0  0910 

0  775 

0.990 

0.990 

76.. 

0  09940 

0  41 

0  0992 

0  769 

0  995 

0.99 

77.... 

0.10440 

0  47 

0  1095 

0.763 

0.997 

0.99 

78  

0  11000 

0  go 

0  1205 

0  757 

0  999 

0.99 

79 

0  1317 

80.... 

0  1445 

SI... 

0.1586 

82.... 

0  1743 

S3.... 

0.1916 

84.... 

0.2114 

85.... 

0.2356 

86... 

0.2657 

87.... 

0  3030 

88.... 

0.3467 

86 


TABLE    IV— Concluded. 


(1) 

(2) 

(3) 

(4) 

(5) 

«S) 

(7) 

(8) 

(9) 

(10) 

<u 

5 

,a  tiojS 

~!s 

fcE,2 

«fiS 

0       0 

sp 

sill 

« 

Rates  of  mortality 
on  active  force 
fromcauses  other 
than  under  (4). 

'-So 

s£ 

8- 

•dfl 

HH"^ 

°>>  . 

«w>> 

Sgs 

d   *H^ 

K 

Rates  of  disability 
retirements. 

Rates  of  service  re- 
tirem»nts. 

Rates  of  mortality 
among-  service 
pensioners  plus 
probabilities  o  f 
return  to  service. 

Probabilities  that  a 
man  dying-  leaves 
a  widow. 

Probabilities  that  a 
man  dying  in  act- 
ive service  had 
been  10  or  more 
years  in  service. 

Probabilities  that  a 
man  dying-  in  act- 
ive service  had 
been  20  or  more 
years  in  service. 

89... 

0.3959 

90. 

0  4545 

91  .... 

0.5325 

92... 

0  6343 

93 

0  7342 

94.... 

0.8571 

We  required  also  the  average  ages  of  wives  for  various  ages 
of  husbands,  and  average  length  of  time  during  which  service 
pensioners  of  given  age  had  been  on  the  pension  roll.  See  Tables 
V  and  VI,  below. 

TABLE  V — (Chicago  Policemen). 

AVERAGE  AGE   OF  WIFE   FOR   VARIOUS   AGES    OF   HUSBAND. 
( Graduated   Values  ) . 


Age 
of  hus- 
band. 

Averag-e 
ag-eof 
wife. 

Ag-e  of 
hus- 
band. 

Averag-e 
ag-e  of 
wife. 

Ag-e  of 
hus- 
band. 

Average 
ag-e  of 
wife. 

Age  of 
hus- 
band. 

Average 
agre  of 
wife. 

Ag-e  of 
hus- 
band. 

Average 
age  of 
wife. 

25 

23.0 

35 

32.0 

45 

41.0 

55 

49.8 

65 

58.9 

26 

24.1 

36 

32.8 

46 

41.9 

56 

50.7 

66 

59.7 

27 

24.9 

37 

33.7 

47 

42.7 

57 

51.6 

67 

60.4 

28 

25.8 

38 

34.7 

48 

43.4 

58 

52.7 

68 

61.0 

29 

26.8 

39 

35.5 

49 

44.3 

59 

53.6 

69 

61.5 

30 

27.6 

40 

36.5 

50 

45.2 

60 

54.7 

70 

62.1 

31 

28.5 

41 

37.3 

51 

46.0 

61 

55.5 

71 

62.7 

32 

29.5 

42 

38.3 

52 

47.0 

62 

56.4 

72 

63.3 

33 

30.3 

43 

39.2 

53 

47.9 

63 

57.3 

73 

64.0 

34 

31.2 

44 

40.1 

54 

48.9 

64 

58.1 

74 

65.0 

TABLE  VI — (Chicago  Policemen). 

AVERAGE   TIME   SERVICE   PENSIONERS   OF   GIVEN  AGE  HAVE  BEEN   ON 

THE    PENSION    ROLL. 
(Graduated  Values). 


Average 

Average 

Average 

Average 

Average 

Pre- 
sent 
ag-e. 

time  on 
pension 
roll. 

Present 
ag-e. 

time  on 
pension 
roll. 

Present 
age. 

time  on 
pension 
roll. 

Present 
age. 

time  on 
pension 
roll. 

Present 
age. 

time  on 
pension 

roll. 

(Years.) 

(Years.) 

(Years.) 

(Years.) 

(Years.) 

43 

1.75 

50 

2.02 

57 

2.90 

64 

4.75 

71 

9.15 

44 

1.76 

51 

2.18 

58 

3.12 

65 

5.12 

72 

10.05 

45 

1.80 

52 

2.24 

59 

3.32 

66 

5.50 

73 

11.00 

46 

1.85 

53 

2.32 

60 

3.50 

67 

6.00 

74 

12.00 

47 

1,87 

54 

2.45 

61 

3.75 

68 

6.48 

75 

13.00 

48 

1.90 

55 

2.60 

62 

4.03 

69 

7.10 

76 

14.00 

49 

1.95 

56 

2.75 

63 

4.38 

70 

8.40 

77 

15.00 

We  needed  also  the  rates  of  mortality  on  widows,  but  as  the 
ages  at  death  of  those  widows  who  had  died  while  pensioners 
were  not  available,  we  were  unable  to  find  these  from  the  exper- 
ience of  the  fund.  We  were  compelled,  therefore,  to  rely  upon 


87 


outside  experience  for  this  information,  and  chose  the  Combined 
Experience  Table  of  Mortality.  This  we  checked  against  the  death 
rates  of  widows  of  New  York  policemen  and  found  that  the  two 
agreed  well. 

Regarding  rates  of  mortality  among  disability  pensioners,  on 
account  of  the  scarcity  of  data  we  were  obliged  to  adopt  for  such 
pensioners  the  rates  of  other  experiences.  We  have  chosen,  as 
best  adapted  to  our  purpose,  the  rates  compiled  from  various 
funds  by  the  eminent  authority  on  pension  funds,  Mr.  H.  W.  Manly. 

ACTIVE  SERVICE  TABLE  AND  SALARY  AND  PENSION   SCALES. 

The  rates  given  in  Table  IV  were  used  to  construct  the  active 
service  table  (Table  VII,  p.  87).  In  this  table,  the  columns  (2) 
to  (7)  are  constructed  by  applying  the  rates  at  each  age  to  the  num- 
ber of  survivors  at  that  age.  To  illustrate  the  meaning  of  this 
table,  we  may  note  that  with  the  57,170  persons  at  age  40  under 
observation  for  a  year,  and  with  rates  experienced  during  the 
10  years  from  1906  to  1916,  we  should  find  429  withdrawals,  40 
deaths  in  line  of  duty,  489  deaths  from  other  causes,  and  63  dis- 
ability retirements. 

The  salary  and  pension  scales  were  prepared  from  salaries 
of  the  active  service  as  of  January  1,  1916.  The  pension  scale  thus 
constructed  is  a  proper  standard  for  future  entrants  on  the  pen- 
sion rolls.  The  two  scales  represent  merely  a  graduation  of  the 
average  salaries  or  pensions  at  given  ages.  For  those  already  on 
pension  we  knew  the  actual  pensions,  and  therefore  did  not  re- 
quire a  pension  scale.  These  actual  pensions  are  given  in  Tables 
VIII,  IX,  X  and  XI,  pp.  88  to  91. 

TABLE  VII — (Chicago  Policemen). 
ACTIVE  SERVICE  TABLE,  AND  SALARY  AND  PENSION  SCALES. 


(1) 

(2) 

(3) 

(4) 

(5) 

(6) 

(7) 

WU3 

IS 

oSS» 

& 

< 

Active  service. 

Withdrawals. 

Dying-  in  line  of 
duty. 

Other  deaths. 

Disability  re- 
tirements. 

Service  retire- 
ments. 

Total  decrement 
Cols.  (3)+(4)+( 
+(6)  +(7). 

K 

2»z 

o  W2 
• 
<u-< 

&-Sd 

aw 

oq 

Pension  scale  1 
males  as  of  ag-e 
entrance  up 
future  pensior 

22 

100  000 

5  730 

337 

6,067 

23 

93  933 

4  227 

335 

4,562 

24 

89  371 

3  128 

335 

3,463 

25. 

85,908 

2,715 

,34 

337 

3.086 

$  910 

26 

82,822 

2  381 

40 

339 

2,760 

947 

27. 

80,062 

2,202 

43 

341 

2,586 

,007 

28. 

77,476 

2  030 

45 

343 

2.418 

.087 

29 

75  058 

1  858 

45 

346 

2,249 

.165 

30. 

72,809 

1,691 

45 

349 

2.085 

.220 

31 

70  724 

1,557 

44 

351 

35 

1,987 

,257 

$654 

32. 

68,737 

1,395 

44 

354 

34 

1,827 

.281 

656 

33. 

66  910 

1  271 

43 

361 

40 

1,715 

.300 

660 

34. 

65,195 

1,125 

43 

369 

39 

1.576 

,312 

665 

35. 

63,619 

1,020 

42 

382 

45 

1,489 

.323 

668 

36. 

62,  130 

882 

41 

401 

50 

T.374 

,332 

670 

37. 

60,756 

796 

40 

422 

49 

1.307 

.342 

674 

38. 

59  449 

654 

40 

446 

54 

1.194 

,351 

675 

39. 

58,  255 

521 

40 

466 

58 

1,085 

,360 

678 

40. 

57.  170 

429 

40 

4HO 

63 

1,021 

,370 

680 

41. 
42. 

56.  149 
55.150 

323 
243 

40 
40 

517 
540 

08 

64 

56 
154 

999 
1,041 

,380 
.391 

682 
685 

88 


TABLE  VII— Concluded. 


(1) 

(2) 

(3) 

(4) 

(5) 

(6) 

(7) 

«® 

Q« 

litJCj 

i 

Active  service. 

Withdrawals. 

Dying-  in  line  of 
duty. 

Other  deaths. 

Disability  re- 
tirements. 

Service  retire- 
ments. 

Total  decrement 
Cols.  (3)+(4)+ 
+<6)+(7). 

II 

|S| 

o  wCTl 

05   * 

& 
ra  o  rt 

giU 

Pension  scale  f 
males  as  of  ag-e 
entrance  upc 
future  pension 

43  
44  
45  
46  
47.... 
48  
49  

54.109 
52,986 
51,768 
50,453 
49,031 
47,  472 
45  783 

200 
170 
150 
141 
132 
123 
114 

41 
41 
42 
44 
46 
45 
43 

568 
599 
632 
666 
699 
743 
783 

65 
69 
67 
66 
69 
66 
69 

249 
339 
424 
505 
613 
712 
847 

1.123 

,218 
,315 
,422 
,559 
,689 

QKC 

$1.402 
,413 
,421 
,428 
.434 
.440 

$690 
695 
696 
700 
702 
706 
708 

50  
51  
52 

43,927 
41,803 
39  443 

110 
105 
99 

42 
41 
39 

821 
849 

CAQ 

70 
69 
07 

,081 
,296 
479 

2,124 

2,360 

2ccn 

.450 
,455 

709 
709 

7AQ 

53  
54 

36,891 
34  173 

92 

85 

37 
34 

874 
882 

70 
58 

,645 

111 

2,718 

2QOQ 

,457 

AK.O 

708 
708 

55  
56  
57 

31,337 
28.423 
25  475 

78 
71 
64 

31 
26 
15 

890 
875 
848 

50 
43 

oc 

,865 
.933 
q=i 

2,914 
2.948 

,455 
1,453 

708 
707 
70fi 

58  
59  

22,561 
19,  753 

56 

2 

805 
753 

27 
20 

.918 
1  857 

2.808 
2  630 

1,448 
1  445 

705 
704 

60  

17  123 

695 

14 

1  772 

2  481 

1  441 

703 

61  

14.642 

633 

10 

1  660 

2  303 

1,437 

702 

62  

12  339 

566 

7 

1  542 

2  115 

432 

701 

63  

10.224 

501 

5 

1  406 

1  912 

427 

700 

64  

8,312 

434 

3 

1  251 

1  688 

423 

699 

65...... 

6  624 

368 

1 

1  086 

1  455 

419 

697 

66  

5,169 

304 

923 

1  227 

413 

696 

67... 

3  942 

246 

769 

1  015 

408 

695 

68  

2,927 

193 

616 

809 

400 

694 

69  

2,118 

148 

475 

693 

393 

694 

70  

1.495 

110 

358 

468 

.385 

693 

71. 

1  027 

79 

264 

343 

376 

692 

72  

684 

56 

188 

944 

366 

691 

73  

440 

38 

128 

166 

355 

690 

74  

274 

25 

88 

113 

348 

689 

75  

161 

15 

58 

73 

343 

688 

76  

88 

9 



36 

45 

,338 

687 

77  

43 

5 

20 

25 

1  3S2 

686 

78  

18 

2 

li 

16 

1.327 

685 

79... 

2 

2 

2 

1  322 

685 

80  

Totals. 

37  geg 

1  318 

25  742 

1  615 

33  357 

100,000 

TABLE  VIII — (Chicag-o  Policemen). 

THE  NUMBER  AND  AVERAGE  PENSION  OF  SERVICE  PENSIONERS  AS   OF 
JANUARY   1,    1916,   CLASSIFIED  WITH   REGARD   TO   AGE. 


Ag-e. 

Num- 
ber. 

Averag-e  pen- 
sion. 

Total 
pensions. 

Ag-e. 

Num- 
ber. 

Averag-e  pen- 
sion. 

Total 
pensions. 

43.... 

3 

$620  00 

$  1,860 

61... 

21 

$644  28 

$13,530 

44  

1 

660  00 

660 

62  

17 

672  82 

11,438 

45.... 

2 

735  50 

1,471 

63  

23 

681  00 

15,663 

46.... 

9 

646  67 

5,820 

64  

14 

647  71 

9,068 

47... 

10 

666  00 

6,660 

65  

10 

717  00 

7,170 

48.... 

11 

641  91 

7,061 

66  

13 

659  23 

8,570 

49.... 

17 

706  47 

12,010 

67  

10 

655  00 

6,550 

50.... 

19 

634  21 

12.050 

68  

14 

717  42 

10,044 

51  .... 

21 

713  81 

14,990 

69  

18 

646  94 

11.645 

52.... 

21 

68000 

14,280 

70  

14 

631  85 

8,846 

53.... 

21 

667  71 

14,022 

71  

15 

658  66 

9.880 

54.... 

28 

675  00 

18.900 

72  

12 

664  50 

7.974 

55.... 

31 

676  77 

20,980 

73  

9 

889  77 

6.208 

56.... 

26 

655  69 

17,048 

74  

9 

650  22 

5,852 

57.... 

30 

655  53 

19,666 

75  

5 

663  20 

3,316 

58.... 

24 

701  60 

16,838 

76  

7 

586  85 

4,108 

59.... 

21 

684  50 

14.375 

77  

4 

641  50 

2,566 

60.... 

29 

664  82 

19,280 

78  

3 

572  00 

1.716 

TABLE  VIII— Concluded. 


Afire. 

Num- 
ber. 

Average  pen- 
sion. 

Total 
pensions. 

Agre. 

Num- 
ber. 

Average  pen- 
sion. 

Total 
pensions. 

79. 
80.     . 
81 

3 
3 

$533  33 
571  33 
cc4  oo 

$1.600 
1,714 
1  108 

84  
86  

1 
1 

$608  00 
500  00 

$608 
500 

82 

2 

600  00 

1  200 

Totals 

555 

$369  453 

83.     . 

1 

60800 

608 

TABLE  IX— (Chicago  Policemen). 

THE  NUMBER  AND  AVERAGE  PENSION  OF  DISABILITY  PENSIONERS   AS 
OF  JANUARY  1,  1916,  CLASSIFIED  WITH  REGARD  TO  AGE. 


Agre 
1916. 

Pensioners  disabled  in 
performance  of  duty. 

Pensioners  disabled  but 
not  in  performance  of  dut3r. 

Totals. 

Num- 
ber. 

Total 
pensions. 

Average 
pension. 

Num- 
ber. 

Total 
pensions. 

Average 
pension. 

Num- 
ber. 

Total 
pensions. 

Average 
pension. 

33 

2 

$1,450 

$725  00 

2 

$1,450 

$72500 

34 

36 

37 

2 

1,320 

660  00 

2 

1,320 

660  00 

40 

1 

660 

660  00 

1 

660 

660  00 

42 

44 

2 

$1.320 

$660  00 

2 

1 
1 
1 

1.320 
600 
600 
660 

660  00 
600  00 
600  00 
660  00 

45 

1 

1 

600 
600 

60000 
600  00 

46 

47 

1 

660 

660  00 

48 

49 

2 

1 

1.260 
600 

630  66 
600  00 

2 

1 

1.260 
600 

630  00 
600  00 

50 

52 

1 

600 

600  00 

1 

600 

600  00 

2 

1.200 

60000 

54  
55  

3 
2 
4 
2 
4 
3 

1,868 
1.208 
2,520 
1,260 
1,400 
1,800 
600 

622  67 
604  00 
630  00 
630  00 
600  00 
600  00 
600  00 

3 

5 
4 
2 
5 
3 
2 

1,868 
3,008 
2,520 
1,260 
3.000 
1.800 
1,200 

622  67 
601  60 
63000 
630  00 
600  00 
600  00 
60000 

3 

1,800 

600  00 

56  
57  
58  
59  
60  
61 

1 

600 

60000 

1 

600 

600  00 

62  
63  

1 
1 

600 
660 

600  00 
660  00 

2 

600 
1.560 

60000 
780  00 

1 

900 

900  00 

65 

67... 
68 

1 

600 

600  00 

1 

600 

600  00 

2 

1.200 

600  00 

69... 
70 

1 

500 

500  00 

1 

500 

500  00 

71 

72 

73 

75 

76 

77  

78 

1 

600 

600  00 

1 

600 

60000 

79 

80 

Totals 

35 

$21,706 

11 

$7,080 

46 

$28.786 

90 


TABLE  X — (Chicago  Policemen). 

THE  NUMBER  AND  AVERAGE   PENSION   OF  WIDOW  PENSIONERS   AS   O] 
JANUARY  1,  1916,  CLASSIFIED  WITH  REGARD  TO  AGE. 


Class  A.* 

Class  B.* 

Class  C.* 

Age. 

Num- 
ber. 

Average 
pension. 

Total 
pen- 
sions. 

Age. 

Num- 
ber. 

Average 
pension. 

Total 
pen- 
sions. 

Age. 

Num- 
ber. 

Average 
pension. 

Total 
pen- 
sions. 

22... 
23.... 
24  

1 
1 

$660  00 
660  00 

$    660 
660 

31.... 
32.... 
33 

1 

$66000 

$    660 

29... 
30... 

1 

$66000 
660  00 

$    660 
660 

31 

25 

34 

2 

70500 

1.410 

32 

26.... 

35 

33  . 

27  . 

36 

34 

2 
1 
2 
2 

630  00 
600  00 
600  00 
660  00 

1.260 
600 
1,200 
1,320 

28.... 

37  

35... 

29.... 
30.... 
31  .  ;  .  . 
32.. 

1 
1 
1 

660  00 
660  00 
66000 

660 
660 
660 

38.... 
39.... 
40.... 
41 

2 
5 
1 
4 
4 
6 
6 
6 
6 
5 
7 
6 
12 
16 
8 
17 
7 
13 
15 
11 
8 
6 
7 
2 
11 
10 
6 
9 
13 
4 
3 
5 
7 
3 
2 
6 
2 
4 
2 
3 
1 
1 
2 

630  00 
678  00 
660  00 
708  75 
667  50 
68000 
685  00 
655  00 
645  00 
756  00 
657  18 
736  67 
661  67 
689  69 
686  25 
647  24 
690  00 
649  69 
642  53 
684  55 
671  25 
596  00 
681  43 
580  00 
671  82 
664  00 
551  33 
700  00 
671  69 
640  00 
655  33 
540  00 
579  71 
750  00 
600  00 
550  17 
600  00 
525  00 
679  00 
666  67 
600  00 
608  00 
550  00 

1,260 
3,390 
660 
2,835 
2,670 
4,080 
4,110 
3,930 
3,870 
3,780 
4,600 
4,420 
7,940 
11,035 
5,490 
11,003 
4,830 
8.446 
9,638 
7,350 
5,370 
3,576 
4,770 
1.160 
7,390 
6,640 
3,308 
6,300 
8,732 
2,560 
1,966 
2,700 
4,058 
2,250 
1,200 
3,301 
1,200 
2,100 
1,358 
2,000 
600 
608 
1,100 

36... 
37... 

38... 

39... 
40... 
41... 

42... 
43... 
44... 
45... 

46... 
47... 
48... 
49... 
50... 
51... 
52... 
53... 
54... 
55... 
56... 
57... 
58... 
59... 
60... 
61... 
62... 
63... 
64... 
65... 
66... 
67... 
68... 
69... 
70... 
71... 
72... 
V3... 
74 

5 
5 
5 
4 
6 
7 
10 
12 
8 
11 
5 
9 
20 
9 
17 
11 
19 
10 
10 
11 
2 
3 
4 
5 
3 
5 
4 
5 
2 
1 
3 
4 
4 
2 
3 

624  00 
647  00 
615  00 
621  25 
578  33 
645  71 
577  00 
575  00 
621  25 
592  73 
604  00 
580  00 
616  00 
578  89 
58000 
602  00 
594  74 
550  00 
570  00 
560  00 
625  00 
583  33 
537  50 
550  00 
490  67 
590  00 
518  00 
54000 
625  00 
485  00 
550  00 
525  00 
518  25 
500  00 
500  00 

3,120 
3,235 
3,075 
2.485 
3.470 
4,520 
5,770 
6,900 
4.970 
6.520 
3.020 
5,220 
12,320 
5.210 
9.860 
6,622 
11.300 
5,500 
5,700 
6,160 
1.250 
1,750 
2,150 
2,750 
1,472 
2,950 
2,072 
2,700 
1,250 
485 
1.650 
2,100 
2,073 
1,000 
1,500 

33.... 
34  

2 

60000 

1.200 

42... 
43 

35. 

44.... 
45.... 
46 

36.... 
37  

3 

641  67 

1,925 

38.... 
39.... 
40.... 
41  

1 
1 
3 

725  00 
600  00 
620  00 

725 

600 
1.860 

47.... 
48.... 
49.... 
50 

42.... 
43.... 
44.... 
45.... 
46.... 
47.... 
48.... 
49.... 
50.... 
51.... 
52.... 
53... 
54.... 
55.... 
56.... 
57.... 
58.... 
59.... 
60.... 
61.... 
62... 
63.... 
64.... 
65... 
66.... 
67... 
68.... 
69.... 
70.... 
71.... 
72.... 
73 

3 
4 
4 
3 
6 
2 
5 
8 
5 
9 
5 
6 
1 
6 
4 
4 
3 
7 
2 
2 
3 
1 
2 
2 
2 
1 
1 
1 
1 
1 
2 

586  67 
590  00 
525  00 
620  00 
575  00 
630  00 
580  00 
545  00 
540  00 
556  67 
520  00 
55667 
900  00 
550  00 
525  00 
565  00 
50000 
574  29 
550  00 
50000 
516  67 
50000 
500  00 
550  00 
500  00 
600  00 
500  00 
500  00 
500  00 
500  00 
630  00 

1,760 
2,360 
2.100 
1.860 
3,450 
1,260 
2,900 
4,360 
2.700 
5.010 
2.600 
3,340 
900 
3.300 
2,100 
2,260 
1.500 
4.020 
1,100 
1.000 
1.550 
500 
1,000 
1,100 
1,000 
600 
500 
500 
500 
500 
1,260 

51.... 
52.... 
53.... 
54.... 
55.... 
56.... 
57.... 
58.... 
59.... 
60.... 
61.... 
62.... 
63.... 
64.... 
65.... 
66.... 
67.... 
68.... 
69.... 
70.... 
71  .... 
72.... 
73.... 
74.... 
75.... 
76.... 
77.... 
78.... 
79.... 
80.... 
81 

75 

76... 
77... 

1 
I 

500  00 
550  00 

500 
550 

82 

74 

83.... 

1 

500  00 

500 

75 

76 

77 

78.... 

79  
80.... 
81 

1 

900  00 

900 

82.... 

83.... 

84.... 

1 

725  00 

725 

Totals 

123 



$70,  125 

278 

$182,154 



255 



$148,879 

*For  definitions  of  these  classes  see  p.  91. 


91 


TABLE  XI — (Chicago  Policemen). 

NUMBER  OF  FAMILIES  AS   OF  JANUARY   1,   1916,   CLASSIFIED  WITH  RE- 
GARD  TO   AGE   OF   YOUNGEST   CHILD. 


Afire. 

Num- 
ber. 

Average  pen- 
sion per  family. 

Total 
pensions. 

Age. 

Num- 
ber. 

Average  pen- 
sion per  family. 

Total 
pensions. 

7 

1 

$725  00 

$     725 

13 

4 

$617  50 

$2  470 

g 

14  

2 

630  00 

1.260 

9 

•> 

675  00 

1  350 

15 

6 

590  00 

3  540 

10 

7(vs  no 

1  410 

1  1 

4 

600  00 

2  400 

Totals 

22 

$13  815 

1:!.... 

1 

66000 

660 

Grand  total  ol  all  pensions  given  in  Tables  VIII,  IX.  X  and  XI,  $813.212. 
CLASSES  OF  PENSIONERS,  PRESENT  AND  FUTURE. 

In  making  our  calculations,  the  whole  group  under  observation 
was  divided  into  three  classes,  as  follows: 

1.  All  pensioners  on  the  pension  roll  January  1,  1916,  together 
with  their  dependents  eligible  for  pension  upon  death  of  any  such 
pensioner. 

2.  All  in  active  service  January  1,  1916,  together  with  their 
surviving  dependents  eligible  for  pension. 

3.  All  who  enter  service  after  January  1,  1916,  together  with 
their  surviving  dependents  eligible  for  pension. 

WIDOW    PENSIONERS. 

It  was  desirable  for  our  purpose  to  separate  widow  pension- 
ers, both  present  and  future,  into  the  following  three  classes : 

(A)  Widows    whose    husbands    died    in    performance    of    duty 
or  from  injuries  received  in  performance  of  duty. 

(B)  Widows   whose   husbands   were    either   service   pensioners 
or  active  members  of  the  force  at  death  after  at  least  20  years 
of  service. 

(C)  Remaining    widows — these    include    widows    whose    hus- 
bands died  from  any  cause  other  than  injuries  received  in  perform- 
ance of  duty  within  more  than  10,  but  less  than  20,  years  of  serv- 
ice, and  the  small  subclass  whose  husbands,  though  disabled,  did 
not  receive  injuries  directly  in  performance  of  duty. 

CHILDREN    PENSIONERS. 

On  January  1,  1916,  there  were  22  families  of  children  on  the 
tension  roll.  We  collected  data  on  the  children  for  all  partici- 
pants from  January  1,  1906,  to  January  1,  1916,  but  the  expected 
number  of  families  that  are  left  with  both  parents  dead  is  so  small 
as  hardly  to  constitute  a  very  reliable  basis  of  prediction  for  the 
future.  It  is  certain  that  under  present  provisions  of  the  law,  the 
costs  for  children's  pensions  have  reached  practically  a  normal  cost; 
in  other  words,  that  the  system  is  carrying  a  normal  load.  For 
chese  reasons,  we  carry  the  children's  pensions  at  their  present 
:ost  in  our  predictions  of  future  costs. 

For  mortality,  among  children,  we  used  the  Standard  Indus- 
:rial  Table  of  Mortality. 

— 7PL 


92 

ALL  PENSIONERS  ON   PENSION   ROLL  JANUARY  1,   1916,   TOGETHER  WITH 

THEIR  DEPENDENTS   ELIGIBLE   FOR   PENSION    UPON   DEATH   OF 

ANY  SUCH  PENSIONER. 

The  expected  cost  by  years  under  this  class  is  given  in  Table 

XII,  p.  96. 

ALL     IN    ACTIVE    SERVICE    JANUARY     1,     1916,     TOGETHER    WITH     THEIR 
SURVIVING    DEPENDENTS    ELIGIBLE    FOR    PENSION. 

The  expected  cost  by  years  under  this  class  is  given  in  Table 

XIII,  p.  98. 

ALL    WHO    ENTER    SERVICE    AFTER    JANUARY    1,    1916,    TOGETHER    WITH 
THEIR   SURVIVING   DEPENDENTS   ELIGIBLE    FOR    PENSION. 

The  expected  cost  by  years  under  this  group  is  given  in  Table 

XIV,  p.  100. 

It  will  be  observed  that,  we  have  given  no  value  for  widow 
pensioners  of  new  entrants  in  1916.  This  value  is  so  small  that 
we  have  simply  assumed  it  would  be  zero  and  applied  the  pen- 
sion rates  to  the  entrants  into  active  service  as  if  they  entered 
at  the  end  of  the  year  of  entrance. 

TABLE  xv. 

This  table  contains  the  totals  of  Tables  XII,  XIII  and  XIV, 
and  thus  includes  the  total  expected  costs  of  pensions  by  years  in 
this  fund.  It  also  gives  for  each  year,  until  the  system  carries  its' 
normal  load,  the  ratios  of  pension  payments  to  salaries,  the  per- 
centage of  salaries  contributed  to  pensions  by  employees,  and  the 
percentage  of  salaries  that  must  be  contributed  from  sources  other 
than  contributions  by  employees  to  maintain  pensions  under  the 
present  plan.  It  is  given  on  pp.  101,  102. 

TABLE    XVI. 

This  table  presents  the  balance  sheet  pertaining  to  this  fund. 
For  further  reference  to  it,  see  p.  103. 

SIGNIFICANT  OBSERVATIONS   FROM   TABLE   IV. 

The  rates  of  withdrawal  by  resignation  and  dismissal  are,  in 
general,  low  compared  with  those  of  other  occupations  on  which 
we  have  data. 

The  rates  of  mortality  for  the  younger  ages  in  the  active  serv- 
ice are  light  in  comparison  with  -rates  given  in  standard  mor4 
tality  tables  used  in  life  insurance,  and  in  comparison  with  tables 
based  on  the  general  population.  The  mortality  remains  rather  low 
until  a  little  above  age  40,  when  it  increases  gradually  to  a  rate 
which  somewhat  exceeds  that  of  the  American  Experience  Table 
of  Mortality. 

The  rate  of  mortality  among  service  pensioners  is  high  in 
comparison  with  rates  in  standard  tables  from  age  at  the  time  of 
retirement  up  to  about  age  79,  after  which  the  experience  coincides 
closely  with  the  American  Experience  Table. 

The  rate  of  mortality  in  line  of  duty  is  not  easily  compared 
with  other  accidental  death  rates,  as  accident  tables  are  not  avail- 


93 

able.  The  rates  given  are  larger  than  corresponding  rates  for  the 
New  York  police  force.  However,  it  is  clear  that  the  mortality  in  the 
line  of  duty  is  so  low  as  to  show  that  the  popular  impression  that 
the  Chicago  police  service  is  extremely  hazardous  is  not  well 
founded  on  fact.  The  disability  rates  compare  favorably  with 
those  of  certain  fraternal  orders  with  total  and  permanent  dis- 
ability. Within  the  10-year  period  there  have  been  service  retire- 
ments at  an  age  as  low  as  41.  The  rate  of  such  retirement  grad- 
ually increases,  becoming  heavy  at  from  ages  45  to  50  and  reach- 
ing a  maximum  at  age  57. 

THE   PENSIONERS   WHO   WILL   COME   FROM    FUTURE   ENTRANTS   INTO   THE 

ACTIVE   SERVICE. 

During  the  10  years  considered  in  this  investigation,  the  aver- 
age age  at  entrance  to  the  police  force  is  29.7  years.  When  a  cer- 
tain class  of  re-entrants  is  eliminated,  the  average  age  is  29.1 
years.  In  making  the  valuation,  an  entrance  age  of  29  is  assumed. 
The  lower  the  age  of  entrance,  the  less  is  the  cost  for  pensions 
in  relation  to  salary. 

The  maintenance  of  a  service  of  the  size  of  the  present  one, 
under  the  same  conditions  of  death  and  withdrawal  as  those  found 
in  the  period  from  1906  to  1916,  would  require  that  219  men  enter 
the  service  annually  at  ages  averaging  near  29  years.  This  num- 
ber of  entrants  was  therefore  used  at  age  29,  and  the  annual  cost 
of  thus  maintaining  pensions  in  the  service  was  determined.  This  is 
exhibited  in  Table  XIV. 

PRESENT  AND  FUTURE  COSTS. 

It  will  be  noted  from  Table  XV  that  the  pension  payments  in 
1916  will  amount  to  about  13.3  per  cent  of  salary  payments,  and  that 
this  per  cent  will  increase  gradually  for  about  40  years,  when  the 
system  will  carry  slightly  more  than  the  ultimate  normal  load.  This 
larger  cost  at  the  end  of  about  40  years  is  due  to  the  nature  of  the 
distribution  of  ages  of  present  participants  in  the  fund.  The  pensions 
will  cost  about  34.3  per  cent  of  salaries  when  the  system  is  carrying 
its  ultimate  normal  load.  The  total  salary  payments  to  participants 
as  of  January  1,  1916,  is  within  less  than  one-half  per  cent  of  what  the 
salaries  for  4,830  men  will  be  when  the  pension  system  carries  its 
normal  load;  in  fact,  for  all  practical  purposes  it  is  as  well  for  us 
to  assume  that  salary  payments  will  be  constant  as  to  introduce  the 
slight  variations  that  will  follow  from  calculating  salaries  to  the 
active  service  by  means  of  a  salary  scale  and  the  age  distribution  of 
the  present  active  service. 

COMPARATIVE   COSTS   FOR  DISABILITY   PENSIONERS    AND   FOR   SERVICE 

PENSIONERS. 

We  observe  from  Table  XIV  that  when  the  pension  system  carries 
its  ultimate  normal  load,  the  annual  value  of  the  disability  pensions  is 
$34.714,  while  the  annual  value  of  the  service  pensions  is  $877,661. 
Expressed  as  percentages  of  the  total  cost  of  all  pensions,  including 
those  to  widows  and  children,  the  disability  pensions  amount  to  1.57 


94 

per  cent  of  the  total  payments,  while  the  service  pensions  amount  to 
39.7  per  cent  of  the  total  pension  payments. 

COMPARATIVE  COSTS  FOR  PENSIONS  TO  MEN  AND  TO  THEIR  WIDOWS. 

We  find  from  Table  XIV  that  when  the  pension  system  carries 
its  ultimate  normal  load,  the  annual  value  of  pensions  to  men  is 
$912,375,  while  the  value  of  widows'  pensions  is  $1,283,043.  Ex- 
pressed as  percentages  of  all  pensions,  those  to  men  amount  to  41.3 
per  cent  of  all  pension  payments,  while  the  pensions  to  widows  amount 
to  58.1  per  cent  of  the  total  of  all  pensions.  The  pensions  to  children 
amount  to  0.6  per  cent  of  all  pensions. 

COMPARATIVE    COSTS   FOR   DIFFERENT   CLASSES   OF   WIDOWS. 

When  the  pension  system  carries  its  ultimate  normal  load,  the 
pensions  have  an  annual  value  of  $96,234  to  widows  of  Class  A, 
$921,416  to  widows  of  Class  B,  and  $265,393  to  those  of  Class  C. 
Expressed  as  percentages  of  the  total  cost  of  all  pensions,  the  pensions 
to  widows  of  Class  A  amount  to  4.36  per  cent,  those  to  widows  of 
Class  B  to  41.7  per  cent,  and  those  to  widows  of  Class  C  to  12.0  pen 
cent.  (For  definitions  of  these  classes  see  p.  91.) 

RESERVES  FOR  THE  FUTURE  FORCE. 

The  law  of  1915  provides  that  a  reserve  fund  shall  be  established 
and  maintained  for  the  payment  of  pensions  to  policemen  (their 
widows  and  children)  becoming  members  of  the  police  force  subse- 
quent to  January  1,  1916.  The  law  does  not  specify  any  standards  with 
respect  to  interest  rate,  mortality  rate  or  withdrawal  rate.  It  requires 
that  one  or  more  competent  actuaries  shall  determine  the  amount 
necessary  to  establish  and  maintain  such  reserve  funds.  It  seems , 
clear  that  standards  of  solvency  should  be  prescribed  when  adequate 
reserves  are  to  be  provided,  just  as  surely  as  standards  must  be  pre- 
scribed for  legal  reserves  in  life  insurance.  The  present  reserve 
provision  is  too  loosely  drawn  to  be  practical. 

PERCENTAGE    OF    SALARIES    REQUIRED    FROM    FUTURE    ENTRANTS    TO 

PROVIDE   PENSIONS    IF   THE    PENSIONS   WERE    TOTALLY 

CONTRIBUTORY. 

To  pay  for  pensions  in  accord  with  rates  given  by  the  10  yearsl 
experience  from  January  1,  1906,  to  January  1,  1916,  and  with  all) 
deductions  from  salaries  accumulated  at  4  per  cent  compound  in- 
terest and  with  no  returns  of  contributions  in  case  of  withdrawal 
or  death,  would  require  for  men  entering  at  age  29  a  deduction! 
of  13.6  per  cent  from  salaries  throughout  the  period  of  active! 
service. 

RESERVES  ON  THE  BASIS  OF  EXPERIENCE. 

If  the  city  should  add  to  the  present  contributions  of  emj 
ployees.  about  11.6  per  cent  of  salaries  of  new  entrants,  there  would 
thus  be  produced  a  proper  reserve  fund  for  a  sound  pension  system  foil 
such  new  entrants. 

VALUATION   BALANCE   SHEET. 

The  balance  sheet  in  Table  XVI  deals  with  assets  and  liabil- 
ities for  those  who  are  at  present  participants  in  the  pension  fundJ 


95 


It  excludes  all  consideration  of  future  entrants  into  the  service. 
It  may  be  observed  that  the  total  payment  of  pensions  to  these 
participants  will  amount  to  $73,091,631,  of  which  $1,851,066  will  be 
contributed  by  these  participants  giving  2  per  cent  of  their  salaries, 
and  also  that  $120,847  constitutes  the  cash  on  hand. 

A  better  way  to  inspect  the  balance  sheet  is  to  give  attention 
to  the  present  value  of  assets  and  liabilities.  The  present  value, 
with  a  4  per  cent  interest  rate,  of  the  liabilities  for  pensions  is 
$32,014,976.  The  present  value  of  the  contributions  of  2  per  cent 
of  salaries  is  $1,291,250.  The  cash  on  hand  amounts  to  $120,847. 
This  means  that  the  present  value  to  the  city  of  carrying  out  the 
pension  system  for  present  participants  under  the  police  fund  amounts 
to  $30,602,879,  if  the  city  should  assume  the  responsibility  of  carrying 
out  this  system. 


96 


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100 


TABLE  XIV—  (Chicago  Policemen). 

TABLE  SHOWING  THE  ANNUAL  AMOUNTS  OF  PENSION  AND  SALARY 
PAYMENTS  TO  BE  MADE  TO  219  PERSONS  ENTERING  EACH  YEAR 
INTO  THE  SERVICE  OF  THE  CHICAGO  POLICE  FORCE  AT  AN 
AVERAGE  AGE,  29  YEARS,  TO  MAINTAIN  A  PERMANENT  STAFF  OF 
PRESENT  SIZE— AND  TO  THEIR  WIDOWS  AND  CHILDREN 


Year. 

Service 
pension- 
ers. 

Disability 
pension- 
ers. 

Widows 
of 
Class  A*. 

Widows 
of 
Class  B*. 

Widows 
of 
Class  C*. 

Chil- 
dren 
pen- 
sion- 
ers. 

Total  pen- 
sion pay- 
ments on 
account  of 
future 
entrants 
to  police 
force. 

Total  sal- 
ary pay- 
ments on 
account  of 
future 
entrants. 

1916 

$         0 

$         0 

$              0 

$    125  657 

1917 

0 

25 

25 

379  034 

1918 

29 

101 

130 

633  314 

1919 

108 

237 

345 

886  624 

1920 

231 

436 

• 

$       20 

687 

1  138  645 

1921 

395 

710 

35 

1  140 

1  387  192 

1922 

600 

i.oes 

50 

1  715 

1  631  822 

1923 

851 

1,500 

65 

2  416 

1  872  572 

1994 

1,149 

2,021 

85 

3  255 

2  109  639 

19->5 

1.492 

2,  631 

108 

4  231 

2  343  282 

19^6 

2.091 

3,334 

132 

5  557 

2  573  76° 

1927 

2,719 

4,134 

$    1  ,  563 

157 

8  573 

2  801  523 

ig->8 

3.384 

5,030 

3  550 

183 

12  147 

3  026  810 

1929 

4,088 

6,022 

6  071 

210 

16  391 

3  249  716 

1930 

4,830 

7,119 

9.347 

238 

21  534 

3  470  090 

1931 

5,627 

8,313 

13  433 

267 

27  640 

3  687  584 

1932 

6,469 

9,607 

18.283 

325 

34  684 

3  901  509 

1933 

7.356 

11,009 

23.839 

415 

42  619 

4  111  091 

1934 

8,361 

12,514 

30  041 

540 

'     51  456 

4  318  359 

1935 

9,260 

14,131 

36.  798 

700 

60  889 

4  514  575 

1936 

10,274 

15,863 

44,030 

900 

71,067 

4,707,172 

1937.... 
1938.... 
1939.... 
1940.... 
1941.... 
1942.... 
1943.... 
1944.... 
1945.... 
1946.... 
1947.... 
1948.... 
1949.... 
1950.... 
1951.... 
1952.... 
1953.... 
1954.... 
1955..  . 
1956.... 
1957  
1958.... 
1959.... 
I960.... 
1961.... 
1962.... 
1963.... 
1964.... 
1965.... 
1966.... 
1967.... 
1968.... 
1969.... 
1970.... 
1971.... 
1972.... 
1973.... 
1974.... 
1975.... 
1976.... 
1977.... 
1978.... 
1979.... 
1980.... 
1981  
1982.... 

$  10,730 
18,  103 
30,552 
45.642 
63,523 
84,367 
108,095 
134,668 
163,903 
195,  537 
229,266 
264,726 
301,557 
339,367 
377.746 
416.269 
454,  530 
492,  142 
528,763 
564,080 
597.845 
629.  854 
659,971 
688.  105 
714,197 
738,211 
760,010 
779,612 
797,077 
812,441 
825,781 
837,  193 
846,797 
854,726 
861,136 
866.190 
870,054 
872.891 
874,869 
876,161 
876,  942 
877,367 
877,566 
877,639 
877,658 
877,  661 

11,333 
12,429 
13,567 
14,  744 
15,948 
17,160 
18,367 
19,558 
20.722 
21,846 
22,922 
23,946 
24.921 
25,  846 
26,725 
27,562 
28,353 
29,099 
29,  800 
30,454 
31,052 
31,604 
32.097 
32,536 
32,922 
33,258 
33,547 
33,793 
33,998 
34,168 
34,305 
34,415 
34,499 
34,  564 
34,612 
34,647 
34,671 
34,687 
34,698 
34,704 
34,710 
34,713 
34,714 
34,714 
34,714 
34.714 

17,706 
19,597 
21,713 
23,871 
26,212 
28.458 
30,871 
33,346 
35,865 
38,407 
40,965 
43,510 
46,034 
48,  535 
51,006 
53.381 
55,833 
58,  186 
60,496 
62,759 
64,978 
67,213 
69,264 
71,322 
73,335 
75,285 
77,  166 
78,972 
80,694 
82,333 
83,881 
85,333 
86.688 
87,942 
89,070 
90,140 
91,084 
91,701 
92,671 
93,319 
93.879 
94,357 
94,765 
95,093 
95,369 
95.593 

$    5,918 
10,183 
17,052 
26,208 
36,762 
49,  174 
63,510 
79,814 
98,080 
118,310 
141,016 
164.381 
190,063 
217,362 
246,  141 
276,  294 
307,638 
339,  985 
373,035 
406.624 
440.  497 
474,412 
508,  125 
541,405 
575.  181 
605,957 
636.538 
666,043 
694,  172 
720,768 
745,861 
769,318 
791,024 
810,894 
828,  873 
844.939 
859,  105 
871,422 
881,972 
890,865 
898,226 
904,221 
908,993 
912,707 
915,522 
917,590 

51.632 
59,556 
67,726 
76,052 
84,494 
93,017 
101,587 
110,170 
118.732 
127.242 
135.668 
113,987 
152,  176 
160,  191 
168.016 
175.627 
183.009 
190,141 
196,998 
203,559 
209,  810 
215,741 
221,343 
226,608 
231,531 
236.  109 
240.340 
244.224 
247.425 
250,296 
-252,847 
255,091 
257,043 
258.721 
260,  145 
261,337 
262,319 
263,115 
263,  748 
264,239 
264,612 
264,886 
265,  080 
265.211 
265.295 
265.345 

1.054 

1,280 
1,515 
1.700 
1,954 
2,280 
2,650 
3,090 
3,600 
4,091 
4.600 
5,079 
5,700 
6,246 
6,  750 
7,370 
8,080 
8,710 
9,400 
9,916 
10,500 
11.100 
11.520 
11,940 
12,300 
12,644 
13.000 
13.300 
13,400 
13,500 
13,570 
13,600 
13,630 
13,650 
13,670 
13,690 
13,710 
13,730 
13,750 
13,770 
13,785 
13.800 
13.815 
13,815 
13.815 
13,815 

98,373 
121,148 
152,  125 
188,217 
228,893 
274,456 
325,080 
380,646 
440,902 
505,  433 
574,436 
645,629 
720,451 
797,547 
876,384 
956,503 
,037,443 
,118,263 
,  198,  492 
,277,392 
,354,682 
.429,924 
,502,320 
,571,916 
,639.466 
,701,464 
.760.P01 
,815,944 
,866,766 
,913.506 
,956,245 
,994.950 
2,029,681 
2,060,497 
2,087,506 
2,110,943 
2,130,943 
2,147,546 
2,161.708 
2.173,058 
2,182,154 
2,189,344 
2,194,933 
2,  199,  179 
.2,202,373 
2,204,718 

4,892.470 
5.069.373 
5.236.324 
5.393.271 
5.538.378 
5.671.373 
5.791.923 
5,899,889 
5,995.424 
6,078,986 
6,151,244 
6,212,917 
6,264,768 
6,307.632 
6.342,429 
6,370,140 
6,391,740 
6,  408,  188 
6,420,418 
6,429,221 
6,435,441 
6,  439,  708 
6,442.546 
6.444,392 
6,445,546 
6.446.221 
6,446,549 
6.446.792 
6.446,871 
6,446,892 
6,446,894 
6,446,894 
6,446,894 
6,446,894 
6,446.894 
6,446,894 
6,446,894 
6,  446,  894 
6.446,894 
6.446.894 
6,446,894 
C,  446,  894 
6,446,894 
6,446,894 
6,446.894 
6.  446.  894 

*  For  definitions  of  these  classes  see  p.  91. 


101 


TABLE  XIV— Concluded. 


Total  pen- 

Chil- 

sion pay- 

Total sal- 

Year. 

Service 
pension- 
ers. 

Disability 
pension- 
ers. 

Widows 
of 
Class  A. 

Widows 
of 
Class  B. 

Widows 
of 
Class  C. 

dren 
pen- 
sion- 

ments  on 
account  of 
future 
entrants 

ary  pay- 
ments on 
account  of 
future 

crs. 

to  police 

entrants. 

force. 

1983.... 

$877,661 

$34.714 

$95,772 

$919,054 

$265,372 

$13,815 

$2.206,388 

$6.446.894 

1984.... 

877.661 

34,714 

95,909 

920,  444 

265,385 

13,815 

2.207,928 

6.446.894 

1985.... 

877.661 

34,714 

96,092 

920,676 

265,390 

13,815 

2.208.348 

6,446,894 

1986.... 

877,661 

34,714 

96,092 

921.052 

265,  392 

13.815 

2.208.726 

6.446,894 

1987.... 

877,661 

34,714 

96,146 

921,256 

265.393 

13,815 

2,208,985 

6,446,894 

1988.... 

877,661 

34,714 

96.184 

921,356 

265,393 

13,815 

2.209,123 

6.446,894 

1989.... 

877,661 

34,714 

96,221 

921,396 

265,  393 

13,815 

2,  209,  200 

6,446.894 

1990.... 

877,661 

34,714 

96,233 

921,411 

265,393 

13,815 

2.209,227 

6,446,894 

1991.... 

877,661 

34,714 

96,234 

921,416 

265,393 

13,815 

2,  209,  233 

6,446,894 

1992.... 

877.661 

34,714 

96,234 

921,416 

265,393 

13,815 

2,209,233 

6,446,894 

1993.... 

877,661 

34.714 

96.234 

921,416 

265,393 

13,815 

2,209.233 

6,  446,  894 

Totals. 

$35,505,791 

$1,769,526 

$4,161,351 

$32,913,073 

$12,218,286 

$594,279 

$87,162.306 

$410,243,176 

TABLE  XV — (Chicag-o  Policemen). 

SHOWING  THE  COMBINED  ANNUAL  PENSION  PAYMENTS  TO  ALL 
CLASSES,  AND  THE  PERCENTAGES  THESE  PAYMENTS  ARE  OF  THE 
TOTAL  SALARIES.  THIS  TABLE  IS  FORMED  BY  COMBINING  RESULTS 
IN  TABLES  XII,  XIII,  AND  XIV,  AND  INCLUDES  ALL  PAYMENTS  OF 
PENSIONS  TO  PRESENT  ACTIVE  SERVICE.  PRESENT  PENSIONERS, 
FUTURE  ENTRANTS,  AND  TO  WIDOWS  AND  CHILDREN. 


Date. 

Pensions  to 
present  pen- 
sioners aii-l 
to  their 
widows  and 
children. 

Pensions  to 
persons  now 
in  active 
service  and 
to  their 
widows  and 
children. 

Pensions  to 
future 
entrants  into 
service  and  to 
their  widows 
and  children. 

Grand  totals 
of  all  pen- 
sions. 

Ratios  of 
pension 
payments 
to  salaries 
expressed 
in  percent- 
ages. 

Percent- 
ages con- 
tributed 
by  em- 
ployees. 

Percent- 
ages con- 
tributed 
by  city 
and  un- 
provided 
for. 

1916.... 

$800,492 

$      54,009 

$               0 

$    854,501 

13.3 

2.0 

11.3 

1917  

781,848 

154,558 

25 

936,  431 

14.5 

2.0 

12.5 

1918  

761.641 

260,566 

130 

.022,337 

15.9 

2.0 

13.9 

1919  

740.  554 

363,874 

345 

,104,773 

17.1 

2.0 

15.1 

1920  

718.142 

462,562 

687 

,181,391' 

18.3 

2.0 

16.3 

1921  

695,642 

561,372 

1,140 

,258,154 

19.5 

2.0 

17.5 

1922  

672,558 

655,216 

1.715 

,329,489 

20.6 

2.0 

18.6 

1923  

650,031 

743,694 

2.416 

,396,141 

21.7 

2.0 

19.7 

1924  

626,840 

832,786 

3.255 

.462,881 

22,7 

2.0 

20.7 

1925  

602,847 

919,  926 

4.231 

,527,004 

23.7 

2.0 

21.7 

1926  

579,219 

999,648 

5.557 

,584,424 

24.6 

2.0 

22.6 

1927  

555,681 

,072,505 

8,573 

,636,759 

25.4 

2.0 

23.4 

1928  

531,159 

.145.040 

12,147 

.688,346 

26.2 

2.0 

24.2 

1929  

506,470 

.211.692 

16,391 

.734,553 

26.9 

2.0 

24.9 

1930  

181,481 

,274,337 

21,534 

,777,292 

27.6 

2  0 

25.6 

1931  

456,796 

.336,327 

27,640 

,820,763 

28.2 

2.0 

26.2 

1932  

431,146 

.389.425 

34,684 

.855,255 

28.8 

2.0 

26.8 

1933  

406,  1K3 

.446,092 

42,619 

,894,894 

29.4 

2.0 

27.4 

1934  

381,330 

.495,  7i« 

51.456 

,928,518 

29.9 

2.0 

27.9 

1935  

866,068 

,539,686 

60,889 

,95fi,663 

30.4 

2.0 

28.4 

1936  

331,753 

.576,849 

71,067 

,979,669 

30.7 

2.0 

28.7 

1937  

908,875 

.611,111 

98.373 

2,017,759 

31.3 

2.0 

29.3 

193*  

283.787 

.638,999 

121.148 

2.043,934 

31.7 

2.0 

29.7 

1939  

Ml,  856 

.665,897 

152,125 

2.079.277 

32.3 

2.0 

30.3 

1940  

B8.701 

,680,375 

188,217 

2.107.293 

32.7 

2.0 

30.7 

1941  

216.825 

.688.091 

228.893' 

2.133.809 

33.1 

2.0 

31.1 

1942  

196.759 

.687,414 

274.456 

2.158,629 

33.5 

2.0 

31.5 

1943  

177,  :>(>:> 

.681.583 

325.080 

2.183,925 

33.9 

2.0 

31.9 

1944  

158.595 

,667.027 

380,646 

2,206,268 

34.2 

2.0 

32.2 

1945  

141,114 

,645,747 

440,902 

2,227,763 

34.6 

2.0 

32.6 

1946  

124.657 

.618.313 

505,433 

2.248,403 

34.9 

2.0 

32.9 

1947  

109,442 

.580,952 

574,437 

2.264,831 

35.1 

2.0 

33.1 

1948  

95,437 

.540,146 

645,  629 

2,281,212 

35.4 

2.0 

33.4 

1949  

82,721 

.493.3*0 

720,451 

2,296,552 

35.6 

2.0 

33.6 

•BO.... 

71,120 

.440,870 

797.547 

2,309,537 

35.8 

2.0 

33.8 

1951  

60,562 

.383,803 

876,384 

2,320,749 

36.0 

2.0 

34.0 

1952  

51,419 

.322,592 

956,503 

2.330,514 

36.1 

2.0 

34.1 

1953  

43.221 

.258.687 

1,037.443 

2,339,351 

36.3 

2.0 

34.3 

102 


TABLE  XV— Concluded. 


Date. 

Pensions  to 
present  pen- 
sioners and 
to  their 
widows  and 
children. 

Pensions  to 
persons  now 
in  active 
service  and 
to  their 
widows  and 
children. 

Pensions  to 
future 
entrants  into 
service  and  to 
their  widows 
and  children. 

Grand  totals 
of  all  pen- 
sions. 

Ratios  of 
pension 
payments 
to  salaries 
expressed 
inpercent- 
ages. 

Percent- 
ages con- 
tributed 
by  em- 
ployees. 

Percent- 
ages con- 
tributed 
by  city 
and  un- 
provided 
for. 

1954  

$36,  141 

$1  191,595 

$1,118,263 

$2,345,999 

36  4 

2  0 

34  4 

1955  
1956...... 
1957  . 

29,872 
24,111 
19  991 

1,122,458 
1,053,409 
981  069 

,198,492 
,277,392 
354  682 

2,350,822 
2,354,912 
2,355  742 

36.5 
36.5 
36  5 

2.0 
2.0 
2  0 

34.5 
34.5 
34  5 

1958  

16,296 

909,429 

,  429,  924 

2,355,649 

36,5 

2  0 

34  5 

1959  
I960  

13,089 
10,421 

839,  197 
770,  404 

,502,320 
,571,916 

2,354,606 
2,352,741 

36.5 
36.5 

2.0 
2.0 

34.5 
34.5 

1961  
1962  . 

8,327 
6,597 

702,528 
636  981 

,639,466 
701,464 

2,350,321 
2  345  042 

36.5 
36  4 

2.0 
2  0 

34.5 
34  4 

1963  
1964  . 

5,219 
4,079 

573,261 
511,993 

^60,  601 
,815,944 

2,339,081 
2,332,016 

36.3 
36  2 

2.0 
2  0 

34.3 
34  2 

1965  
1966  
1967  
1968  
1969  
1970  
1971..  .  . 

3,207 
2,545 
1.985 
1,555 
1,213 
960 
767 

453,870 
398,652 
317,529 
300,032 
255,524 
216,154 
180,  f'77 

,866,766 
,913,506 
,956,245 
,994,950 
2,029,681' 
2,060,497 
2,087,506 

2,323,843 
2,314,703 
2,305,759 
2,296,537 

2,286,418 
2,277,611 
2,268,950 

36.0 
35.9 
35.8 
35.6 
35.5 
35.3 
35  2 

2.0 
2.0 
2.0 
2.0 
2.0 
2.0 
2  0 

34.0 
33.9 
33.8 
33.6 
33.5 
33.3 
33  2 

1972  
1973  
1974  . 

616 
495 
391 

149,230 
121,605 
97  658 

2,110,943 
2,130.943 
2,  147,546 

2,260,789 
2,253,043 
2  245  595 

35.0 
34.9 
34  8 

2.0 
2.0 
2  0 

33.0 
32.9 
32  8 

1975  
1976  
1977  
1978  
1979 

312 
243 

187 
142 
106 

77,275 
59,  979 
46,770 
35,028 
25  226 

2,161,708 
2.173,058 
2,182,154 
2,189,344 
2,'194,933 

2,239,295 
2,233,280 
2,229,111 
2,224,514 
2  220  265 

34.7 
34.6 
34.6 
34.5 
34  4 

2.0 
2.0 
2.0 
2.0 
2  0 

32.7 
32.6 
32.6 
32.5 
32  4 

1980  
1981  . 

79 
57 

18,190 
12,875 

2,199,179 
2,202,373 

2,217,448 
2,215,305 

34.4 
34  4 

2.0 
2  0 

32.4 
32  4 

1982  
1983  
1984 

40 
25 
15 

8,908 
6,106 

3,884 

2,204,718 
2,206,388 
2,207,928 

2,213,666 
2,212,519 
2,211  827 

34.3 
34.3 
34  3 

2.0 
2.0 
2'0 

32.3 
32.3 
32  3 

1985  
1986  
1987  
1988  

8 
5 
2 

2,403 
1,398 
753 
367 

2,208,348 
2,208,726 
2,208.985 
2,209,123 

2,210,759 
2,210,129 

2,209,740 
2,209,490 

34.3 
34.3 
34.3 
34  3 

2.0 
2.0 
2.0 
2  0 

32.3 
32.3 
32.3 
32.3 

1989 

156 

2,209  200 

2,209  356 

34  3 

2  0 

32  3 

1990 

58 

2  209  227 

2  209  285 

34  3 

2  0 

32  3 

1991.. 

19 

2,209,233 

2,209,252 

34  3 

2  0 

32  3 

1992 

6 

2  209  233 

2  209  239 

34  3 

2  0 

32  3 

1993  

1 

2,209,233 

2,209,234 

34  3 

2  0 

32.3 

Totals 

$14  878  091 

$58  213  540 

$87  162  306 

$160  253  937 

103 


BALANCE  SHEET  SHOWING  STATUS  OF  FUND  AS  OF  JANUARY  1,  1916. 

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ons  to  555  pensioners  now  on  service  pension  roll  .  . 
ons  to  46  pensioners  now  on  disability  pension  roll 
ons  to  123  widows  of  Class  A  now  on  pension  roll.  .  . 
ons  to  278  widows  of  Class  B  now  on  pension  roll..  . 
ons  to  255  widows  of  Class  C  now  on  pension  roll..  . 
ons  to  22  families  of  children  now  on  pension  roll.  . 

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104 


THE  FIREMEN'S  FUND  OF  CHICAGO. 

THE   BENEFITS. 

The  following  outline  gives  in  brief  form  a  notion  of  the  benefits 
To  Employees. 

Service  pensions :  Pension  of  one-half  of  salary  at  time  of  retire- 
ment is  paid  to  all  who  choose  to  retire  after  20  years  of  service. 

Disability  pensions :  Pension  of  one-half  of  final  salary  is  awardec 
without  service  requirement  if  a  member  is  disabled. 
To  Families  of  Employees. 

Widow  whose  husband  dies  from  any  cause  while  in  the  fire  serv- 
ice, or  during  retirement  after  20  years  of  service,  receives  $45  per 
month  while  unmarried. 

Each  natural  child  under  16  years  of  age,  whose  father  dies  from 
any  cause  while  in  the  fire  service,  or  during  retirement  after  20  years 
of  service,  receives  $8  per  month  if  the  mother  is  living,  and  $15  per 
month  if  the  mother  is  not  living.  The  payment  of  pension  to  a  chile 
continues  until  the  child  is  16  years  old. 

If  the  deceased  fireman  leaves  no  widow,  or  natural  child  or  chil- 
dren, surviving  him,  but  leaves  a  dependent  natural  father  or  mother 
then  such  dependent  father  or  mother  receives  the  sum  of  $25  each 
monthly,  provided  it  is  proved  that  the  deceased  fireman  at  the  time 
of  his  death  was  the  sole  and  only  support  of  such  parent  or  parents. 

EXPLANATORY    NOTE. 

Tables  XVII,  XVIII  and  XIX,  pp.  104  and  105  respectively,  give 
a  summary  of  the  results  of  the  tabulation  of  the  data  collected.  They 
correspond  to  Tables  I,  II  and  III,  pp.  83  and  84,  respectively,  in 
the  case  of  the  Chicago  police  fund. 

TABLE  XVII — (Chicago  Firemen). 

ACTUAL  EXPERIENCE  WITH  THOSE  WHO  HAVE  BEEN  IN  ACTIVE  SERV 

ICE  WITHIN  THE  PERIOD  OF  JANUARY  1,  1906,  AND  JANUARY  1.  1916. 


(1) 

(2) 

(3) 

(4) 

(5) 

(6) 

(7) 

(8) 

(9) 

(10) 

(11) 

(12) 

(13) 

(14) 

a  CD 

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V 

6« 

fld 

A 

d 

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5 

a 

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p^; 

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ft 

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^.•s 

oj  o  ° 

on  active  f  o 
entrance. 

drawn  f  ron" 
fore  Jan.  1, 
entrance. 

rt  OJ 

a  & 

facrt 

S* 
%Z 

** 

p  . 

>, 

ra 
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HH 
o 

H>  rt 

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cd 

,d 
f 

irements  f 
line  of  d 
retirement 

ty  retireme 
retirement 

•ements,  \ 
ement. 

nts.  Cols.  ( 
-(10)+(11). 

sS 

on  active  fc 

1 

Survivors  of 
active  fore 
with  ages  as 

Survivors  of  « 
on  active  fo 
with  ages  aj 

Entrants  still 
with  ages  at 

Entrants  with 
tive  force  be 
with  ages  at 

Withdrawals 
or  dismissal 
withdrawal. 

Deaths  in  lin 
ages  at  deatl 

Other  deaths 
death. 

S-s! 
Hi 

3*3 

s3*£ 

Q 

Other  disabili 
with  ages  at 

Service  reti] 
ages  at  retir 

Total  decreme 
(7)+(8)+(9)4 

Existing  Jan. 
list  with  ag 
1916. 

Married  men 
Jan.  1,  1916. 

21 

1 

6 

3 

2 

2 

2° 

3 

o 

84 

16 

o 

0 

23 

g 

1 

112 

21 

3 

3 

6 

1 

94 

7 

8 

141 

32 

10 

10 

17 

5 

95 

16 

10 

106 

15 

2 

1 

18 

30 

12 

26  

17 

9 

99 

26 

25 

3 

1 

29 

39 

18 

27 

37 

10 

101 

23 

24 

2 

3 

0 

29 

46 

28 

Etc. 

Detail 

for 

each 

age. 

Totals  

907 

473 

1,066 

228 

272 

40 

115 

46 

30 

198 

701 

1,973 

1.619 

105 


TABLE  XVIII— (Chicago  Firemen). 
ACTUAL    EXPERIENCE    WITH    SERVICE    PENSIONERS. 


(1) 

(2) 

(3) 

(4) 

(5) 

(6) 

(7) 

(8) 

Age. 

Survivors 
of  Jan.  l. 
1906,  still 
on  roll 
Jan.l,  1916, 
with  ages 
as  of  1906. 

Deaths 
among- 
survivors 
of  1906, 
with  ag-es 
at  death. 

Returns 
to  service, 
of  survi- 
vors of 
Jan.  1,1906, 
with  ag-es 
at  return. 

Entrants 
to  pension 
still  on 
roll  Jan.  1, 
1916,  with 
ag-es  at 
entrance. 

Deaths 
among-  en- 
trants to 
pension, 
with  ag-es 
at  death. 

Returns 
to  service 
of  en- 
trants to 
pension, 
with  ag-es 
at  return. 

Existing- 
on  roll 
Jan.  1,1916, 
with  ag-es 
as  of  Jan. 
1,  1916. 

40.. 

1 

41  

42  

43 

5 

44.. 

6 

3 

45  

1 

5 

1 

1 

4 

46.. 

1 

9 

£> 

4 

47 

11 

1 

4 

Etc. 

Detail  for 

each  ag-e. 

Totals.... 

20 

30 

1 

144 

41 

14 

164 

TABLE  XIX— (Chicago  Firemen). 
ACTUAL    EXPERIENCE    WITH    DISABILITY    PENSIONERS. 


(1) 

(2) 

(3) 

(4) 

(5) 

(6) 

(7) 

(8) 

Ag-e. 

Survivors 
of  Jan.  1, 
1906,  still 
on  roll 
Jan.  1,1916, 
with  ii!.res 
as  of  Jan. 
1.  1906. 

Deaths 
among- 
survivors 
of  1906, 
with  ag-es 
at  death. 

Returns  to 
service, 
with  ag-es 
at  return. 

Entrants 
still  on 
roll  Jan.  1, 
1916,  with 
ag-es  at 
entrance. 

Deaths 
among- 
entrants 
to  pension, 
with  ages 
at  death. 

Returns  to 
service  of 
entrants 
to  pen- 
sion, with 
ag-es  at 
return. 

Existing- 
on  roll 
Jan.  1,  1916, 
with  ag-es 
as  of  Jan 
1.  1916. 

25.. 

j 

26 

1 

27.. 

28 

29.. 

2 

1 

30 

1 

31  

4 

32 

1 

33  

2 

1 

Etc. 

Detail  for 

each  ag-e. 

Totals  

25 

11 

1 

58 

14 

1 

83 

DETERMINATION  OF  RATES  OF   CHANGES  ON   WHICH   COSTS  OF  PENSIONS 

DEPENDS. 

The  following  table,  Table  XX,  p.  106,  is  similar  to  Table  IV, 
p.  85,  for  the  Chicago  police  fund,  in  that  it  gives  the  rates  and  proba- 
bilities resulting  from  a  graduation  of  rates  obtained  from  the  actual 
experience. 

As  in  the  case  of  the  Chicago  police  fund,  in  dealing  with  the 
probable  future  cost  for  widows,  we  need  to  know  what  the  proba- 
bilities are  that  men  of  various  classes  and  ages  will  leave  widows 
eligible  to  a  pension.  For  this  purpose,  we  calculated  the  probability 
that  a  man  dying  at  a  given  age  will  leave  a  widow,  and  the  proba- 
bility that  a  man  dying  in  active  service  will  have  had  at  least  20  years 
of  service.  These  results  are  also  given  in  Table  XX,  p.  106. 


106 


TABLE  XX— (Chicago  Firemen). 


(1) 

(2) 

(3) 

(4) 

(5) 

(6) 

(7) 

(8) 

(9) 

do) 

a; 

Ratesof  withdrawal 
by  resignation  or 
dismissal. 

Rates  of  mortality 
on  active  force 
from  causesother 
than  under  (4). 

JL«H 

•3° 

rt  rt 

>> 

3 

ri  • 

•Sfl 

'rC  <U 

MnS 

|£ 

P 

t 
V 

o 

*> 

83 

<+-i  V 

°s 

<u£ 

r 

Probabilitiesthat  a 
man  dying  leaves 
a  widow. 

Probabilities  that  a 
man  dying  in  act- 
ive service  had 
been  20  or  more 
years  in  service. 

Rates  of  mortalty 
among  service 
pensioners  plus 
probabilities  of 
return  to  service. 

Rates  of  mortality 
among-  disability 
pensioners. 

21  

0.0347 

0.00320 

0.00120 

0.00120 

22  

0.0343 

0.00330 

0.00120 

0.00125 

23  

0.0338 

0.00339 

0.00120 

0.00130 

24  

0.0333 

0.00350 

0.00120 

0.00135 

25  

0.0327 

0.00361 

0.00120 

0.00140 

26  

0.0321 

0.00372 

0.00151 

0.00146 

27  

0.0312 

0.00388 

0.00172 

0.00155 

0.5850 

28  

0  0302 

0.00405 

0.00185 

0.00182 

0.6520 

29 

0  0288 

0.00422 

0  00195 

0  00207 

0  7000 

0  2900 

30  

0.0276 

0.00440 

0.00202 

0.00252 

0.7300 

0  2700 

31. 

0  0261 

0  00460 

0  00209 

0  00310 

0.7610 

0  2500 

32 

0  0245 

0  00480 

0  00215 

0  00352 

0  7860 

0  2320 

33 

0  0220 

0.00505 

0.00220 

0  00390 

0.8110 

0  2150 

34 

0  0194 

0  00531 

0  00224 

0  00422 

0  8340 

0  1990 

35  .. 

0.0170 

0.00560 

0.00228 

0  00450 

0.8500 

0  1840 

36 

0  0150 

0  00590 

0  00232 

0  00478 

0.8700 

0  1710 

37  

0.0134 

0.00618 

0,00234 

0.00500 

0.8800 

0  1580 

38 

0  0116 

0  00643 

0  00237 

0  00522 

0  8880 

0  1470 

39 

0  0106 

0  00668 

0  00240 

0  00532 

0  8960 

0  1370 

40 

0  0094 

0  00690 

0.00242 

0  00560 

0.9040 

0  1280 

41 

0  0082 

0  00710 

0  00244 

0  00579 

0  0025 

0  9080 

0  0380 

0  1200 

42  
43  
44  
45  
46  
47  
48  
49  
50 

0.0075 
0.0058 
0.0047 
0.0040 
0.0033 
0.0027 
0.0023 
0.0018 
0  0015 

0.00728 
0.00743 
0.00762 
0.00777 
0.00794 
0.00813 
0.00833 
0.00856 
0  00878 

0.00245 
0.00247 
0.00248 
0.00248 
0.00247 
0.00245 
0.00242 
0.00237 
0  00232 

0.00594 
0.00608 
0.00621 
0.00635 
0.00647 
0.00652 
0,00662 
0.00672 
0  00680 

0.0065 
0.0120 
0.0156 
0.0181 
0.0217 
0.0239 
0.0264 
0.0?99 
0  0338 

0.9130 
0.9170 
0.9210 
0.9240 
0.9260 
0.9270 
0.9270 
0.9270 
0  9250 

0.1530 
0.2270 
0.3030 
0.3750 
0.4520 
0.5280 
0.6040 
0.6810 
0  7560 

0.0380 
0.0382 
0.0384 
0.0385 
0.0388 
0.0390 
0.0395 
0.0400 
0.0405 

0.1130 
0.1080 
0.1030 
0.1000 
0.0980 
0.0960 
0.0940 
0.0920 
0  0900 

51  

0.0012 

0.00906 

0.00226 

0.00682 

0.0375 

0.9220 

0.8130 

0.0410 

0.0880 

52  

0  0008 

0  00936 

0  00219 

0  00688 

0  0418 

0.9190 

0.8540 

0.0418 

'   0  0860 

53  

0.0005 

0.00970 

0.00214 

0.00690 

0.0461 

0.9150 

0.8870 

0.0425 

0.0840 

54  

0  OlOOO 

0  00210 

0  00691 

0  0517 

0.9110 

0.9080 

0.0433 

0  0820 

55 

0  01040 

0  00207 

0  00692 

0  0565 

0  9060 

0  9240 

0  0442 

0  0800 

56  

0  01095 

0  00205 

0  00692 

0.0630 

0.9000 

0.9390 

0.0450 

0.0780 

57.  . 

0  01250 

0  00203 

0  00688 

0  0683 

0  8940 

0  9520 

0.0462 

0  0760 

58  

0.01440 

0.00200 

0.00680 

0.0741 

0,8880 

0.9660 

0.0475 

0'0740 

59  

0  01620 

0  00193 

0  00670 

0  0800 

0,8780 

0.9770 

0.0488 

0.0720 

60 

0  01800 

0  00185 

0  00658 

0  0858 

0  8700 

0  9860 

0  0500 

0  0700 

61  

0.01960 

0  00173 

0  00636 

0  0917 

0.8640 

0.9920 

0.0515 

0.0660 

62  

0  02175 

0  00158 

0  00610 

0  0984 

0  8500 

0  9970 

0.0530 

0  0620 

63  

0.02380 

0  00138 

0  00568 

0.1041 

0.8360 

1.0000 

0.0547 

0.0580 

64 

0  02630 

0  00110 

0  00495 

0  1098 

0  8240 

1  0000 

0.0565 

0.0540 

65 

0  02940 

0  00050 

0  00645 

0  1150 

0  8100 

1  0000 

0.0583 

0  0550 

66  
67 

0.03270 
0  03600 

0.00840 

0.1214 
0  1279 

0.7960 
0.7820 

1.0000 
1  0000 

0.0605 
0.0625 

0.0570 
0.0600 

68  

0.04200 

0.1350 

0.7850 

1.0000 

0.0648 

0.0680 

69  

0  05000 

0  1461 

0.7500 

0.0670 

0.0790 

70  

0.05960 

0.1580 

0.7260 

0.0700 

0.0900 

71  

0  06420 

0  1764 

0.7000 

0.0728 

0.1000 

72  .  . 

0  06920 

0  1989 

0  6800 

0.0760 

0.1100 

73  

0.07470 

0.2240 

0.6600 

0.0800 

0.1200 

74  

0  08070 

0  2457 

0  6400 

0.0850 

0.1300 

75 

0  08720 

0  2709 

0  6150 

0.0910 

0.1400 

76  

0  09430 

0  3200 

0.5920 

0.0992 

0.1500 

77  

0  10200 

0  4000 

0  5650 

0.1095 

0.1620 

78 

0  11000 

0  5400 

0  5400 

0.1205 

0.1750 

79  

0  7500 

0.5200 

0.1317 

0.1890 

80  

1  0000 

0  4800 

0.1445 

0.2050 

81 

0  4550 

0.1586 

0.2220 

82  

0.4250 

0.1743 

0.2400 

83  

0.1916 

0.2590 

84. 

0.2114 

0.2790 

85  

0.2356 

0.3010 

86  

0.2657 

0.3230 

87.  . 

0.3030 

0.3480 

88... 

0.3467 

0.3710 

107 


TABLE  XX— Concluded. 


(l) 

(2) 

(3) 

(4) 

(5) 

(6) 

(7) 

(8) 

(9) 

(10) 

V 

s 

Rates  of  withdrawal 
by  resignation  or 
dismissal. 

Rates  of  mortality 
on  active  force 
fromcausesother 
than  under  (4). 

'   4-1 

go 

SS 
8a 

•OS 

vw"" 
0  >,    . 

sis 

rt^-s 

M 

Rates  of  disability 
retirement. 

Rates  of  service  re- 
tirement. 

Probabilities  that  a 
man  dying  leaves 
a  widow. 

Probabilities  that  a 
man  dying  in  act- 
ive service  had 
been  20  or  more 
years  in  service. 

Rates  of  mortality 
among  se  r  v  i  c  e 
pensioners  plus 
probabilities  o  f 
return  to  service. 

Rates  of  mortality 
among  disability 
pensioners. 

89 

0.3959 

0.4000 

90 

0.4545 

0.4250 

91 

0.5325 

0.4580 

92 

0.6343 

0.4830 

93 

0.7342 

0.5000 

94 

0.8571 

0.5330 

95 

1.0000 

0.5710 

96 

0.6670 

97 

1.0000 

We  required  also  the  average  ages  of  wives  for  various  ages  of 
husbands,  and  the  average  length  of  time  during  which  service  and 
disability  pensioners  of  given  age  had  been  on  the  pension  roll.  These 
are  given  in  Tables  XXI,  XXII  and  XXIII  below. 

TABLE  XXI — (Chicago  Firemen). 

AVERAGE   AGE    OF   WIFE   FOR  VARIOUS   AGES    OF   HUSBAND. 
(Graduated  Values). 


Age 

Average 

Affe  of 

Average 

Age  of 

Average 

Age  of 

Average 

Age  of 

Average 

of  hus- 
band. 

age  of 
wife. 

hus- 
band. 

age  of 
wife. 

hus- 
band. 

age  of 
wife. 

hus- 
band. 

age  of 
wife. 

hus- 
band. 

age  of 
wife. 

23  

23.7 

34 

31.0 

45 

40.8 

56 

50.5 

67 

60.1 

24  

23.9 

35 

31.9 

46 

41.6 

57 

51.4 

68 

61.0 

25  

24.3 

36 

32.7 

47 

42.5 

58 

52.2 

69 

62. 

26  

24.8 

37 

33.7 

48 

43.4 

59 

53.1 

70 

63. 

27  

25.4 

38 

34.6 

49 

44.3 

60 

54.0 

71 

64. 

28  

26.0 

39 

35.4 

50 

45.1 

61 

54.9 

72 

65. 

29  

26.7 

40 

36.3 

51 

46.0 

62 

55.8 

73 

66. 

30  

27.5 

41 

37.2 

52 

46.9 

63 

56.6 

74 

67. 

31  

28.4 

42 

38.0 

53 

47.8 

64 

57.5 

75 

68. 

32  

29.2 

43 

38.9 

54 

48.7 

65 

58.4 

76 

69. 

33  

30.1 

44 

39.8 

55 

49.6 

66 

59.3 

77 

70. 

TABLE  XXII— (Chicago  Firemen). 

AVERAGE   TIME   SERVICE    PENSIONERS   OF   GIVEN   AGE   HAVE   BEEN   ON 

THE   PENSION   ROLL. 
(Graduated  Values). 


<u    ~ 

<u      „: 

<U       „: 

<U       „: 

D       1 

0)      ^ 

jent  age. 

SH       ^—  « 

>ent  age. 

fi  c  S 

i-j     ^ 

sent  age. 

.§§1 
P£ 

gss 

fi 

|§5 

a^s 
gs^ 

sent  age. 

rage  tim 
pension 
11.  (Years 

sent  age. 

igS 

s^ 

885 

E 

>  O  >-i 

E 

>    O    >H 

8 

<U  CH   O 
>   O  »H 

C 

^§2 

E 

OJ  C  O 
>  O  Ui 

E 

<U  fl  O 

>  O  V-i 

^ 

«< 

fi 

< 

<5 

cu 

<j 

PH 

44.. 

0.7 

51 

2.7 

58 

4.5 

65 

6.3 

72 

9.2 

79 

14.2 

45..    .. 

1.0 

52 

2.9 

59 

4.7 

66 

6.6 

73 

9.8 

80 

15.2 

46..    .. 

1.2 

53 

3.2 

60 

5.0 

67 

6.9 

74 

10.5 

81 

16.2 

47. 

1.5 

54 

3.5 

61 

5.2 

68 

7.3 

75 

11.2 

82 

17.2 

48..    .. 

1.8 

55 

3.7 

62 

5.5 

69 

7.7 

76 

12.0 

83 

18.2 

49..    .. 

2.0 

56 

4.0 

63 

5.7 

70 

8.2 

77 

12.7 

84 

19.2 

50  

2.4 

57 

4.3 

64 

6.0 

71 

8.6 

78 

13.4 

85 

20.2 

— 8  PL 


108 


TABLE  XXIII— (Chicago  Firemen). 

AVERAGE    TIME    DISABILITY    PENSIONERS    OF    GIVEN    AGE    HAVE    BEEN 

ON    THE   PENSION   ROLL. 

(Graduated   Values). 


0) 

hi 

rt 

||| 

2ss 

o3 
1 

hi 
v?.? 

1 

*ct 

•9  0  o3 

;?£ 

<u 

i 

III 

«§£ 

V 

bfi 
H 

.y 

*|£ 

i 

cJ 

lie 

+••  05  0> 
0)  fl>i 

Preseni 

gfc 

£§2 
4 

1 
a 

JH 

PH 

bficu^ 
rj  p,_; 

<u  do 

>  O  »-i 
4 

c 

0» 

I 
£ 

SfS^ 

<u  Co 

>  0  M 

•< 

\ 
I 

PH 

b£o3^ 
2ad 

£§2 
«3 

c 

0) 

w 

1 

§gc 

£a~ 

£§2 
•< 

I 
z 

PH 

&fc 

£§2 

•< 

32.   . 
33  
34  
35  
36  

1.75 
2.0 
2.2 
2.5 

2.8 

42 

43 
44 
45 
46 

5.0 
5.2 
5.5 

5.7 
6.0 

52 
53 
54 
55 
56 

7.9 
8.3 
8.6 
9.0 
9.3 

62 
63 
64 
65 
66 

11.7 
12.1 
12.5 
13.0 
13.5 

72 
73 
74 
75 
76 

17.2 
18.0 
18.7 
19.5 

20  2 

82 
83 

84 

25.2 
26.1 
27.0 

37  
38  

3.2 
3.5 

47 

48 

6.4 
6.7 

57 

58 

9.6 
10.0 

67 

68 

14.1 
14.7 

77 
78 

21.0 
21.8 

39  

3.9 

49 

7.1 

59 

10.4 

69 

15.2 

79 

22  6 

40  

4.3 

50 

7.2 

60 

10.8 

70 

15.7 

80 

23.4 

41  

4.7 

51 

7.5 

61 

11.2 

71 

16.5 

81 

24  3 

On  account  of  the  inadequacy  of  the  data,  we  were  compelled  to 
use  for  rates  of  mortality  among  pensioners  rates  other  than  those 
derived  from  the  experience  of  the  fund.  After  having  made  com- 
parisons with  various  experiences,  we  concluded  that  we  would  be 
justified  in  using  the  same  rates  of  mortality  as  were  used  for  retired 
policemen  and  their  dependents,  and  accordingly  they  were  adopted. 

ACTIVE    SERVICE    TABLE    AND    SALARY    AND    PENSION    SCALES. 

The  rates  given  in  Table  XX,  p.  106,  were  used  to  construct  the 
active  service  table  (Table  XXIV,  below). 

The  salary  and  pension  scales  were  prepared  as  in  the  case  of  the 
Chicago  police  fund. 

TABLE  XXIV— (Chicag-o  Firerhen). 
ACTIVE   SERVICE   TABLE,   AND   SALARY  AND   PENSION   SCALES. 


(1) 

(2) 

(3) 

(4) 

(5) 

(6) 

(7) 

g~ 

»„.. 

«36i« 

i 

V 

Withdraw- 
als. 

Dying-  in  line 
of  duty. 

Other 
deaths. 

Disability  re- 
tirements. 

Service  re- 
tirements. 

Total  decre- 
ments. Cols 
+  (4)  +  (5)-i- 
+  (7). 

Salary  sea 
from  acti 
service  Jan 
1916. 

Pension  sea 
for  males 
of  agre  at  e 
trance  for  1 
ture  entran 

21 

100  000 

3  470 

120 

320 

120 

4  030 

22 

95,970 

3,  292 

115 

317 

120 

3,844 

23.. 
24.. 
25.. 
26 

92,  126 

88,469 
84,988 
81  681 

3,114 
2.946 
2,779 
2,622 

111 
106 
102 
123 

312 
310 
307 
304 

120 
119 
119 
119 

:::::::::: 

3,657 
3,481 
3,307 
3,168 

$1,080 
,174 
.222 
,260 

$540 
587 
611 
630 

27.. 

28.. 
29 

78,513 
75,501 
72  638 

2,  450 

2,280 
2,092 

135 
140 
142 

305 
306 
307 

122 
137 

150 



3,012 
2,863 
2.691 

,286 
,312 
,338 

643. 
656 
669 

SO 

69,  947 

1,931 

141 

308 

176 

2,556 

.356 

678 

31.. 
32.. 
33.. 
34 

67,391 
64.972 
62.699 
60.620 

,759 
,592 
.379 
,176 

141 
140 
.  138 
136 

310 
312 
317 
322 

209 
229 
245 
256 



2,419 
2,273 
2,079 
,890 

,374 

,386 
,402 
,418 

687 
693 
701 
709 

35.. 
36 

58.730 
57  005 

998 

855 

134 
132 

329 
336 

264 
272 

,725 
,595 

,434 

,450 

717 
725 

37 

55  410 

742 

130 

342 

277 

,491 

.464 

732 

38. 
39 

53.919 
59  538 

625 
557 

128 
126 

347 
351 

281 
280 

,381 
,314 

.482 
.500 

741 
750 

40 

51  224 

482 

124 

353 

287 

,246 

,520 

760 

41. 
42. 
43. 

49,  978 
48,  677 
47,234 

410 
365 
274 

122 
119 
117 

355 
354 
351 

289 
289 
287 

125 
316 
567 

,301 
,443 
1,596 

,536 
,554 
,570 

768 

785 

109 


TABLE  XXIV— Concluded. 


(1) 

(2) 

(3) 

(4) 

(5) 

(6) 

(7) 

co  ^ 

0)  4;^ 

Z«**£ 

4J 

tx 

< 

u 

• 

0) 

£« 

1- 

Withdraw- 
als. 

Dyingrinline 
of  duty. 

Other 
deaths. 

Disability  re- 
tirements. 

Service  re- 
tirements. 

Total  decre- 
ments. Cols 
+(4)  (5;+( 
+(7). 

Salary  sea 
from  act  i  ^ 
service  Jan 
1916. 

*J    <U>*H  rj 

H*\ 

1SMI 

G  0^->  ^  3 
<U<<-i  O  -t->  *-> 

OH 

44. 
45. 
46. 
47. 
48. 
49. 
BO. 
51. 
52. 
53.. 
54 

45,638 
43,968 
42.26(5 
40.497 
38,728 
36,944 
35.1S1 
33,253 
31.363 
29,447 
•27  :,-'2 

214 
176 
139 
109 
89 
66 
53 
40 
25 
15 

113 
109 
104 
99 
94 
88 
81 
75 
69 
63 
58 

348 
342 
336 
329 
323 
316 
308 
301 
294 
286 
275 

283 
279 
273 
264 
256 
248 
239 
227 
217 
203 
190 

712 
796 
917 
968 
,022 
,105 
,187 
,247 
,311 
,358 
423 

,670 
,702 
,769 
,769 
,784 
,823 
,868 
,890 
,916 
,925 
,946 

$1,586 
.604 
,622 
.640 
.656 
,670 
,686 
,702 
,714 
,724 
734 

$793 
802 
811 
820 
828 
835 
843 
851 
857 
862 
867 

55.. 
56 

25,576 

2:<  t>;c> 

53 

48 

266 
259 

177 
164 

,445 

489 

,941 
960 

,746 

758 

873 
879 

57.. 

58.. 

59 

21,  (575 
19,731 
17,812 

44 
39 
34 

271 

284 
271 

149 
134 
119 

,480 
,462 
,425 

,944 
,919 
849 

,767 

.778 
787 

883 
889 
893 

60.. 

15,963 

30 

287 

105 

370 

792 

798 

899 

61 

14  171 

25 

278 

90 

999 

699 

805 

QO2 

62. 

12,479 

20 

271 

76 

2°8 

595 

816 

908 

63.. 
64.. 
65.. 
66.. 

10,884 
9,414 
8,075 
6,853 



15 
10 
4 

259 
248 
237 
224 

62 

47 
52 

58 

,134 
.034 
929 
832 

,470 
,339 
,222 
1  114 

,823 
.831 
.841 
850 

911 
916 
921 
925 

67 

5  739 

207 

734 

941 

860 

QOf) 

6*.. 

4,798 

202 

648 

850 

869 

934 

69 

197 

578 

775 

860 

930 

70 

189 

501 

690 

850 

925 

71. 

159 

438 

597 

850 

Q->«; 

131 

375 

506 

850 

73.. 

103 

309 

412 

850 

9''5 

74 

78 

238 

316 

850 

75 

57 

177 

234 

850 

Q-)^ 

76 

39 

134 

173 

850 

77.. 

25 

98 

193 

850 

92^ 

78 

13 

66 

79 

850 

79.. 

3° 

39 

HO 

11 

11 

81 

8-' 

Totals. 

39,116 

4.197 

15,488 

8,679 

32,520 

100,000 

• 

Tables  XXV,  XXVI,  XXVII  and  XXVIII,  on  pp.  109,  110  and 
111,  respectively,  are  entirely  similar  to  Tables  VIII,  IX,  X  and 
XI,  pp.  88,  89,  90  and  91,  respectively,  in  the  Chicago  police  fund. 
To  these  is  also  added  Table  XXIX,  p.  1 12,  giving  the  average  number 
of  children  under  16  years  of  age  of  firemen  of  various  ages. 

TABLE  XXV— (Chicago  Firemen). 

THE  NUMBER  AND  AVERAGE  PENSION  OF  SERVICE  PENSIONERS  AS  OF 
JANUARY    1,    1916.    CLASSIFIED   WITH    REGARD    TO    AGE. 


A&e. 

Num- 
ber. 

Average 
pension. 

Total 
pensions. 

Age. 

Num- 
ber. 

Average 
pension. 

Total 
pensions. 

44  
45  

3 
4 

$734  67 
766  50 

$  2,204 
3  066 

54  ... 
55 

8 
15 

828  25 
727  13 

$  6.826 
10  907 

46 

4 

789  50 

3  158 

56 

g 

773  50 

6100 

47  

4 

719  75 

2  879 

57 

5 

781  60 

3  908 

48.. 

7 

771  86 

5  403 

58 

4 

69°  75 

2771 

49... 

3 

861  67 

2,585 

59 

•  4 

799  25 

3  197 

50  

5 

759  hO 

3  798 

60 

12 

783  75 

94f»c 

51  

7 

716  00 

5,012 

61  

2 

842  50 

1  685 

52  

7 

745  43 

5,218 

62 

2 

•;•->(  50 

1  449 

53  

7 

785  29 

5,497 

63 

4 

733  75 

2  935 

110 

TABLE  XXV— Concluded. 


Agre. 

Num- 
ber. 

Average 
pension. 

Total 
pensions. 

Agre. 

Num- 
ber. 

Average 
pension. 

Total 
pensions. 

64... 
65          

5 
4 

$    796  60 
886  25 

$3,983 
3,  545 

74  
75  

2 
2 

$679  50 
716  00 

$1,359 
1  432 

66 

4 

785  00 

3,  140 

76 

1 

567  00 

567 

67... 
68 

3 
2 

1,674  67 
730  00 

5,024 
1,460 

77  
78         

2 
2 

717  50 
625  00 

1.435 
1  250 

69  

6 

669  00 

4,014 

79  

1 

725  00 

725 

70 

1 

759  00 

759 

80  

1 

825  00 

825 

71 

3 

1,060  67 

3,182 

99 

1 

725  00 

725 

79 

6 

846  30 

5  078 

73 

3 

783  00 

2,349 

Totals 

164 

$128  743 

TABLE  XXVI— (Chicag-o  Firemen). 

THE  NUMBER  AND  AVERAGE  PENSION  OF  DISABILITY  PENSIONERS  AS 
OF  JANUARY    1,    1916,    CLASSIFIED   WITH   REGARD   TO   AGE. 


d 

5 
oJ 

3 

Pensioners  disabled  in 
performance  of  duty. 

Pensioners  disabled  but 
not  in  performance 
of  duty. 

Totals. 

1 

a 
£ 

CO 

73  SJ 

"o  G  53 
EH 

<u  d 

be  o 

2g 
g 

ij 

<u 
p 

i 

p 
fc 

cc 

3|l 

O  d  cfl 

H 

£§ 

21 

![ 

1 
3 

£ 

w 

3fj| 

O  &  02 

B 

<u  fj 
%o 

II 

32... 
33 

o 

$    685 

$685  00 

i 

$    685 

$    685  00 

34  

1 

I 
2 

6 

0 

696 
550 
685 
1,307 
3,831 

696  00 
550  00 
685  00 
653  50 
638  50 

i 
i 

$    528 
685 

$  528  00 
685  00 

2 
2 
1 
2 

7 

1,224 
1,235 
685 
1,307 
4,455 

612  00 
617  50 
685  00 
653  50 
635  43 

35  

36 

37  
38 

i 

624 

624  00 

39 

40 

o 

i 
i 

567 
624 

567  66 
624  00 

1 
2 
2 
4 
3 
3 
5 
6 
1 
4 
3 
0 
3 
3 
4 
5 
0 
1 
1 
2 
1 
3 
1 
2 
0 
1 
1 
0 

1 
1 
1 

0 

1 

567 
1,531 
1,388 
2,568 

1,871 
1,971 
3,364 
4,882 
685 
2,528 
1,709 

567  00 
765  50 
694  00 
642  00 
623  67 
657  00 
672  80 
813  67 
685  00 
632  00 
569  67 

41  

1 
2 
3 
2 
2 
4 
5 
1 
2 
1 

o 

907 
1,388 
1,944 
1,247 
1,347 
2,797 
3.975 
685 
1,331 
624 

907  00 
'694  00 
648  00 
623  50 
673  50 
699  25 
795  00 
685  00 
665  50 
624  00 

42  
43  
44  
45  
46  
47  
48  
49  
50  
51 

i 
i 
i 
i 
i 

624 

624 
624 
567 

907 

624  00 
624  00 
624  00 
567  00 
907  00 

2 
2 

1,197 
1.085 

598  50 
542  50 

52  
53  
54  
55  
56 

3 
1 
3 
4 

o 

1,550 
575 

1.855 

2,984 

516  67 
575  00 
618  33 
746  00 

"V 

1 
1 

1,550 
1,774 
2,422 
3,551 

516  67 
591  33 
605  50 
710  20 

1,199 
567 
567 

599  50 
567  00 
567  00 

57  

58 

0 
0 

1 
1 

759 
624 

759  00 
624  00 

759 
624 
1.049 
624 
2,191 
624 
1,401 

759  00 
624  00 
524  50 
624  00 
730  33 
624  00 
700  50 

59  
60 

2 

o 

1.019 

524  50 

1 

1 

624 
764 

624  00 
764  00 

61  
62  
63 

2 
1 

0 

1,427 
624 

713  50 
624  00 

2 

1,401 

70050 

64  
65 

0 

o 

1 
1 

1,375 
834 

1,375  00 
834  00 

1,375 
834 

1  ,  375  00 
834  00 

66 

o 

67 

o 

68  
69  
70  
71  
72  
73  

1 
1 
1 

0 

1 

474 

624 

567 

"'575' 

474  00 
624  00 
567  00 

474 

624 
567 

474  00 
624  00 
567  00 

575  00 

575 

575  00 

74  
75 

76  

1 

525 

525  00 

1 

525 

525  00  i 

Ill 

TABLE   XXVI— Concluded. 


d 
£ 

1 

Pensioners  disabled  in 
performance  of  duty. 

Pensioners  disabled  but 
not  in  performance 
of  duty. 

Totals. 

Number. 

rig! 

gs-s 

Average 
pension. 

Number. 

Sfjjj 

'o  ft  "55 

Average 
pension. 

Number. 

pi 

jf| 
51 
P 

77 

78 

79 

80 

81 

82 

83  
Totals. 

1 

$528 

$528  00 

1 

$528 

$528  00 

57 

$37,356 

26 

$17.370 

83 

$54,726 

TABLE  XXVII— (Chicag-o  Firemen). 

THE  NUMBER  AND  PENSIONS  OF  WIDOW  PENSIONERS  AS  OF  JANUARY 

1,   1916. 
(For  classification  as  to  ages,  see  Table  LXXVII,  p.  173.) 


Class. 

Number. 

Average 
pension. 

Total 
pensions. 

A*                                                                           

84 

$540 

$45,360 

B                                        

122 

540 

65,880 

c 

85 

540 

45.900 

Totals 

291 

$157.  140 

*  For  definitions  of  A,  B  and  C,  see  p.  112. 

TABLE  XXVIII— (Chicago  Firemen). 

NUMBER  AND  PENSIONS  OF  CHILDREN  PENSIONERS  AS  OF  JANUARY  1, 
1916,  CLASSIFIED  WITH  REGARD  TO  AGE. 


Age. 

Number. 

Average 
pension. 

Total 
pensions. 

0-  i 

0 

1-  9 

4 

$  96  00 

$    384 

2-3              

1 

96  00 

96 

3-  4 

7 

96  00 

672 

4-5                .     .  .                                 

5 

96  00 

480 

5-  6 

13 

96  00 

1.248 

C-  7                .                                       

12 

98  00 

1.152 

7-  8 

12 

96  00 

1.152 

8-9                                    

12 

98  00 

1.152 

9-10 

7 

98  00 

672 

10-11                                        

10 

96  00 

980 

11-12 

10 

.       98  00 

960 

12-13 

13 

96  00 

1.248 

13-14                                                                                      .    . 

24 

96  00 

2.304 

14-15                        

22 

103  64 

2,280 

15-16 

12 

98  00 

1.152 

Totals 

164 

$15.912 

Grand  total  of  all  pensions  given  in  Tables  XXV,  XXVI,  XXVII  and  XXVIII, 
$356,521. 


112 


TABLE  XXIX— (Chicago  Firemen). 

AVERAGE  NUMBER  OF  CHILDREN   UNDER  16   TEARS   OF  AGE  OF   FIRE- 
MEN  OF  VARIOUS   AGES. 


IH 

(H 

M 

^ 

<L> 
£ 

2 

2 

JS 

§ 

g 

Id 

£2 

d 
<u 

g 

|g 

S  ^ 

0>2 

d 

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id 

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d 
a> 
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s| 

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ii 

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IN 

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93 

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ii 

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O 

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bo 

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& 

^ 

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<u 

fcuo 

<U4-l 

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<U 

tuo 

a»^-i 
l>  o 

^ 

<$ 

4 

<J 

<J 

<5° 

<«3 

<1 

<! 

<J 

24. 

0.16 

36 

.78 

48 

1.52 

60 

0.31 

25. 

0.24 

37 

.86 

49 

1.34 

61 

0.27 

26. 

0.38 

38 

.92 

50 

1.16 

62 

0.23 

27. 

0.53 

39 

.96 

51 

1.00 

63 

0.19 

28. 

0.68 

40 

.99 

52 

0.88 

64 

0.16 

29. 

0.88 

41 

.99 

53 

0.78 

65 

0.13 

30. 

.07 

42 

.97 

54 

0.68 

66 

0.11 

31. 

.23 

43 

.93 

55 

0.59 

67 

0.08 

32. 

.36 

44 

.88 

56 

0.52 

68 

0  06 

33. 

.48 

45 

.82 

57 

0.46 

69 

34. 

.59 

46 

.74 

58 

0.40 

70 

35. 

.69 

47 

.66 

59 

0.35 

71 

CLASSES  OF  PENSIONERS,  PRESENT  AND  FUTURE. 

In  making  our  calculations,  the  whole  group  under  observation 
was  divided  into  three  classes,  according  to  the  classification  given  in 
the  discussion  of  the  Chicago  police  fund,  p.  91. 


WIDOW    PENSIONERS. 

In  the  case  of  the  firemen's  fund,  widow  pensioners,  both  present 
and  future,  were  divided  into  three  classes  as  follows: 

(A)  Widows  whose  husbands  died  in  performance  of  duty  or 
from  injuries  received  in  performance  of  duty. 

(B)  Widows  whose  husbands  were  either  service  pensioners  or 
active  members  of  the  department  at  death  after  at  least  20  years  of 
service. 

(C)  Remaining  widows — these  include  widows  whose  husbands 
died  from  any  cause  other  than  injuries  received  in  performance  of 
duty,  with  less  than  20  years  of  service,  and  the  small  subclass  whose 
husbands,  though  disabled,  'did  not  receive  injuries  directly  in  per- 
formance of  duty. 

CHILDREN    PENSIONERS. 

On  January  1,  1916,  there  were  164  children  on  the  pension  roll 
with  pensions  amounting  to  $15,912  per  annum.  As  in  the  case  of  the 
Chicago  police  fund,  it  is  certain  that  under  present  provisions  of  the 
law,  the  cost  for  children's  pensions  will  remain  relatively  insignificant. 

DEPENDENT   PARENTS. 

From  the  experience  under  this  fund,  we  find  that  the  cost  of  this 
feature  is  relatively  so  small  that  it  may  be  neglected  in  our  predictions 
of  future  cost.  The  data  is  inadequate  to  make  any  reliable  prediction, 
except  to  say  that  this  feature  is  of  no  practical  import  as  far  as  its 
cost  is  concerned. 


113 

ALL   PENSIONERS  ON   PENSION   ROLL  JANUARY    1,    1916,   TOGETHER   WITH 

THEIR  DEPENDENTS   ELIGIBLE   FOR   PENSION    UPON   DEATH    OF 

ANY  SUCH  PENSIONER. 

The  expected  cost  by  years  under  this  group  is  given  in  Table 

XXX,  p.  116. 

ALL  IN   ACTIVE  SERVICE   JANUARY   1,    1916,   TOGETHER   WITH    THEIR 
SURVIVING  DEPENDENTS  ELIGIBLE  FOR  PENSION. 

The  expected  cost  by  years  under  this  class  is  given  in  Table 

XXXI,  p.  118. 

ALL  WHO  ENTER  SERVICE  AFTER  JANUARY  1,   1916,  TOGETHER  WITH 
THEIR  SURVIVING  DEPENDENTS  ELIGIBLE  FOR  PENSION. 

The  expected  cost  by  years  under  this  class  is  given  in  Table 

XXXII,  p.  120. 

TABLE    XXXIII. 

This  table  p.  121  contains  the  total  of  values  in  Table  XXX,  XXXI 
and  XXXII,  pp.  116,  118  and  120,  and  thus  includes  the  total  expected 
costs  of  pensions  by  years  in  this  fund.  It  also  gives  for  each  year, 
until  the  system  carries  its  normal  load,  the  ratios  of  pension  payments 
to  salaries,  the  percentages  of  salaries  contributed  to  pensions  by  em- 
ployees and  the  percentages  of  salaries  that  must  be  contributed  from 
sources  other  than  contributions  by  employees  to  maintain  pensions 
under  the  present  plan. 

TABLE    XXXIV. 

This  table  presents  the  balance  sheet  pertaining  to  this  fund.  For 
further  reference  to  it,  see  p.  115. 

COMPARISON   OF  RATES   BETWEEN   FIREMEN   AND  POLICEMEN. 

A  comparison  of  rates  among  firemen  (Table  XX)  with  those 
among  policemen  (Table  IV)  shows  that  rates  of  withdrawal  of  fire- 
men by  resignation  do  not  differ  greatly  from  those  for  policemen, 
the  rates  for  firemen  being  a  little  less  at  the  extremes  of  the  table 
and  a  little  greater  at  intermediate  ages.  The  rates  of  mortality  in  the 
active  service  from  ordinary  causes  are,  in  general,  lower  than  those 
for  policemen,  but  the  rates  of  death  in  the  performance  of  duty  are 
much  higher  than  for  policemen.  In  fact,  for  ages  for  which  our  data 
is  most  reliable,  these  rates  are  from  twice  to  nearly  four  times  as 
much  as  for  policemen. 

The  rates  of  disability  retirements  are  also  much  higher  for  fire- 
men than  for  policemen. 

The  rates  of  service  retirements  below  age  53  are  higher  for  fire- 
men than  for  policemen.  For  ages  above  53  the  rates  are  higher  for 
policemen. 

THE  PENSIONERS   WHO   WILL   COME   FROM   FUTURE  ENTRANTS   INTO   THE 

ACTIVE   SERVICE. 

During  the  10  years  considered  in  this  investigation,  the  average 
age  at  entrance  to  the  fire  service  is  27.15.  In  making  our  valuation 
for  future  entrants,  an  entrance  age  of  27  is  assumed. 


114 

A  service  of  the  size  of  the  present  one,  under  the  same  conditions 
of  death  and  withdrawal  rates  as  those  found  in  the  period  from  1906 
to  1916,  could  be  kept  up  if  94  men  of  age  27  entered  annually.  This 
number  of  entrants  is  therefore  assumed,  and  the  annual  future  cost 
of  thus  maintaining  the  service  is  determined  and  exhibited  in  Table 
XXXII,  p.  120. 

PRESENT  AND  FUTURE  COSTS. 

It  may  be  noted  from  Table  XXXIII,  p.  121,  that  the  pension 
payments  in  1916  will  amount  to  about  12.6  per  cent  of  salary  pay- 
ments, and  that  this  will  increase  gradually  for  about  40  years,  when 
the  system  will  carry  slightly  more  than  the  normal  load.  The  pen- 
sions will  cost  36.6  per  cent  of  salaries  when  the  system  is  carrying 
its  ultimate  normal  load. 

COMPARATIVE   COSTS   FOR  DISABILITY   PENSIONERS   AND   FOR   SERVICE 

PENSIONERS. 

We  observe  from  Table  XXXII,  p.  120,  that  when  the  pension 
system  carries  its  ultimate  normal  load,  the  annual  cost  of  disability 
pensions  is  $70,345,  while  that  of  service  pensions  is  $442,615.  Ex- 
pressed as  percentages  of  the  total  annual  cost  of  all  pensions,  includ- 
ing those  to  widows  and  children,  the  disability  pensions  amount  to 
6.56  per  cent  of  the  total  pensions,  while  the  service  pensions  amount 
to  41.30  per  cent  of  the  total  pension  payments. 

COMPARATIVE  COSTS  FOR  PENSIONS  TO  MEN  AND  TO  THEIR  WIDOWS. 

We  find  from  Table  XXXII,  p.  120,  that  when  the  pension  sys- 
tem carries  its  ultimate  normal  load,  the  annual  cost  of  pensions  to 
men  is  $512,960,  while  the  cost  of  widows'  pensions  is  $531,862.  Ex- 
pressed as  percentages  of  all  pensions  paid,  those  to  men  amount  to 
47.86  per  cent  of  all  pension  payments,  while  the  pensions  to  widows 
amount  to  49.62  per  cent  of  all  pension  payments.  The  pensions  to 
children  will  amount  to  2.52  per  cent  of  all  pensions. 

COMPARATIVE   COSTS   FOR  DIFFERENT   CLASSES   OF   WIDOWS. 

The  classes  A,  B  and  C  of  widows  of  firemen  are  defined  on  p.  112. 

When  the  pension  system  carries  its  ultimate  normal  load,  the 
pensions  have  an  annual  value  of  ,$112,545  to  widows  of  Class  A, 
$268,222  to  widows  of  Class  B,  $151,095  to  widows  of  Class  C.  Ex- 
pressed as  percentages  of  the  total  cost  of  all  pensions,  the  pensions 
to  widows  of  Class  A  amount  to  10.50  per  cent,  those  to  widows  of 
Class  B  to  25.02  per  cent,  and  those  to  widows  of  Class  C  to  14.10 
per  cent. 

PERCENTAGE    OF    SALARIES    REQUIRED    FROM     FUTURE    ENTRANTS    TO 

PROVIDE    PENSIONS    IF   THE    PENSIONS    WERE    TOTALLY 

CONTRIBUTORY. 

To  pay  pensions  in  accord  with  rates  given  by  the  10  years' 
experience  from  January  1,  1906,  to  January  1,  1916,  and  with  all 
deductions  from  salaries  accumulated  at  4  per  cent  compound  interest, 
and  with  no  returns  of  contributions  in  case  of  withdrawal  or  death, 
would  require  for  men  entering  at  age  27  a  deduction  of  15.87  per  cent 
from  salaries. 


116 

RESERVES  ON  THE  BASIS  OF  EXPERIENCE. 

If  the  city  should  add  to  the. present  contributions  of  1  per  cent 
from  employees  about  14.9  per  cent  of  salaries  of  new  entrants,  this 
would  produce  a  proper  reserve  for  a  sound  pension  system  for  new 
entrants  on  the  assumption  that  rates  of  withdrawal,  death  and  retire- 
ment experienced  from  January  1,  1906,  to  January  1,  1916,  will 
continue. 

VALUATION   BALANCE  SHEET. 

The  balance  sheet  in  Table  XXXIV  exhibits  the  present  values 
of  assets  and  liabilities  for  the  group  of  persons  who  are  at  present 
participants  in  the  pension  fund.  It  excludes  all  reference  to  future 
entrants  into  the  service.  It  may  be  observed  that  the  total  payments 
of  pensions  to  these  participants  will  amount  to  $33,416,548,  of  which 
$494,909  will  be  contributed  by  these  participants  giving  1  per  cent 
of  their  salaries.  Further,  $3,101  constitutes  the  cash  on  hand  January 
1,  1916.  This  leaves  $32,918,538  to  be  contributed  from  sources  other 
than  contributions  of  employees. 

A  better  way  to  inspect  the  balance  sheet  is  to  give  attention  to 
the  present  value  of  assets  and  liabilities.  The  present  value,  with  a 
4  per  cent  interest  rate,  of  the  liabilities  for  pensions  is  $14,103,917. 
The  present  value  of  the  contributions  of  1  per  cent  of  salaries  amounts 
to  $328,805.  The  cash  on  hand  is  $3,101.  This  means  that  the  present 
value  to  the  city  of  the  liability  for  carrying  out  the  pension  system 
for  present  participants  under  the  firemen's  fund  amounts  to  $13,772,- 
0]1,  if  the  city  should  assume  the  responsibility  for  carrying  out  this 
system. 


116 


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120 


TABLE  XXXII—  (Chicago  Firemen). 

TABLE  SHOWING  THE  ANNUAL  AMOUNTS  OF  PENSION  AND  SALARY 
PAYMENTS  TO  BE  MADE  TO  94  PERSONS  ENTERING  EACH  YEAR  INTO 
THE  SERVICE  OF  THE  CHICAGO  FIRE  DEPARTMENT  AT  AN  AVERAGE 
AGE  OF  27  YEARS  TO  MAINTAIN  A  PERMANENT  STAFF  OF  PRESENT 
SIZE— AND  TO  THEIR  WIDOWS  AND  CHILDREN. 


i 

Year. 

Service  pen- 
sioners. 

Disability- 
pensioners. 

Widows  o  f 
Class  A*. 

Widows  o  f 
Class  B*. 

Widows  of 
Class  C*. 

Children 
pensioners. 

Total  pen- 
sion pay- 
ments on 
account  of 
future  en- 
trants. 

Total  salary 
payments 
on  ac- 
count  of 
future  en- 
trants . 

1916... 

$     0 

$     0 

$     0 

$     0 

$       0 

$   59  989 

1917  

39 

30 

60 

15 

144 

173  238 

1918 

147 

127 

249 

62 

cue 

1919  

316 

303 

583 

151 

1  353 

404  857 

1920 

546 

567 

1  073 

292 

2  478 

515  063 

1921  

849 

914 

1  727 

492 

3  982 

622  491 

1922  
1923 

1,233 
1  701 

1,377 
1  949 

2,554 
3  563 

758 
1  094 

5,922 
8  307 

727,  204 
899  608 

1924  

2,  255 

2,634 

4  763 

1  501 

11  153 

929  939 

1925 

2,898 

3  437 

6  169 

1  98° 

14  479 

1  028  402 

1926  

3,631 

4,359 

7,767 

2  537 

18  294 

1  1^5  098 

1927  

4,460 

5,404 

9  584 

3  165 

22  610 

1  290  228 

1928  

5,381 

6,564 

11,617 

3  864 

27  426 

1  314  036 

1929  

6,398 

7,847 

13  867 

4  629 

32  741 

1  406  664 

1930 

7  513 

9  250 

16  340 

5  455 

38  558 

1  498  062 

1931  

8,732 

10,  770 

19  033 

6  336 

44  871 

1  588  0^9 

1932 

10,056 

12  405 

21  930 

7  264 

51  655 

1  676  283 

1933  

11,483 

14,  155 

25,005 

8  232 

58  875 

1  762  462 

1934  

13,011 

16,017 

28  241 

9  231 

66  500 

1  846  400 

1935 

14  633 

17  989 

31  620 

10  258 

74  500 

1  927  981 

1936  
1937 

$     0 
3,417 

16,349 
18,  144 

20,065 
22  246 

$    6 

597 

35,  121 

38  726 

11,306 
12  368 

82,842 
95  498 

2,007,050 
2  083  447 

1938  

7,664 

20,011 

24,524 

1,400 

42,415 

13  435 

109  449 

2  156  976 

1939  
1940 

12,780 
18,819 

21,940 
23,  925 

26,895 
29  353 

2,440 
3  748 

46,  170 
49  972 

14,494 
15  532 

124.719 
141  349 

2.227,502 
2  294  924 

1941  
1942 

25,822 
33,  818 

25,957 
28,  024 

31,890 
34  500 

5,353 

7,279 

53,805 
57  657 

16,537 
17  499 

159,364 

178  777 

2,359,039 
2  419  632 

1943  
1944  
1945  
1946  
1947 

42,824 
52,854 
63,910 
75,981 
89,  038 

30,  122 
32,241 
34,367 
36,494 
38,614 

37,  175 
39,906 
42,685 
45,503 
48  351 

9,550 
12,187 
15,205 
18,621 
22,456 

61,517 
65,376 
69,  226 
73,058 
76  865 

18,  4H 
19,278 
20,  088 
20,  843 
21  544 

199,602 
221,842 
245.481 
270.500 
296  868 

2,476,587 
2,529,863 
2,579,422 
2,625,213 
2  667  041 

1948  
1949  
1950 

103,015 
117,830 
133,  383 

40,717 
42,794 
44  837 

51,223 
54,110 
56  102 

26,  734 
31,468 
36  668 

80,639 
84,373 
88  059 

22,  193 

22,790 
23  338 

324,521 
353,365 

382  387 

2,705,085 
2,  739,  367 
2  769  982 

1951  
1952 

149,  560 
166,  236 

46,844 

48,800 

59,888 
62,758 

42,339 

48,  478 

91,689 
95,254 

23,849 
24  305 

414,  169 
445  831 

2,  797,  078 
2  820  852 

1953 

183,279 

50  708 

65  601 

55  092 

98  747 

24  716 

478  143 

2  841  512 

1954  
1955  
1956  
1957  
1958  
1959  
1960 

200,541 
217,875 
235,  142 
252,206 
268,949 
285,268 
301,071 

52,  563 
54,371 
56,  138 
57,805 
59.372 
60,  832 
62,  177 

68,404 
71.159 
73,858 
76,496 
79,067 
81,568 
83,994 

62,  161 
69,652 
77,533 
85,765 
94,328 
103,  177 
112,261 

102,  161 
105,490 
108,728 
111,869 
114,909 
117,842 
120,  664 

25,085 
25,414 
25,706 
25,963 
26,  185 
26,376 
26  531 

510,915 
543,961 
577,  105 
610,  104 
642,810 
675,063 
706  698 

2,859,322 
2.874,520 

2,887,353 
2,898,105 
2,907,962 
2,914  058 
2  919  608 

1961  
1962  
1963  
1964  
1965  
1966  

316,269 
330,  793 
344,577 
357,548 
369,  637 
380,  788 

63,401 
64,502 
65,482 
66,345 
67,095 
67,  740 

86,  342 
88,612 
90,  798 
92,894 
94,893 
96,  790 

121,519 
130,  883 
140,314 
149,  744 
159,111 
168,350 

123,370 
125,954 
128,410 
130,743 
132,949 
135,024 

26,657 
26,  758 
26,837 
26,899 
26,  946 
26,981 

737,558 
767,  502 
796,418 
824,  173 
850,  631 
875,673 

2,923,824 
2,926,922 
2,929,199 
2,  930,  608 
2,931,567 
2,932,136 

1967  
1968  
1969  

390,  955 
400,094 
408,  182 

68,289 
68,  748 
69,  127 

98,578 
100,  253 
101,811 

177,405 
186,224 
194,754 

136,  963 
138,763 
140,  422 

27,007 
27,025 
27,  037 

899,  197 
921,107 
941,333 

2.932,436 
2,932,551 
2.932,586 

1970  
1971  
1972  
1973  
1974  
1975  
1976  
1977  
1978  
1979  
1980  
1981  
1982  
1983  
1984  

415,227 
421,253 
426,324 
430,511 
433,896 
436,565 
438,605 
440,  103 
441,147 
441,829 
442,241 
442,465 
442,  570 
442,608 
442,614 

69,  434 
69,  678 
70,013 
70,  120 
70,  197 
70,251 
70,  287 
70,311 
70,  326 
70,336 
70,341 
70,344 
70,  345 
70,3*5 
70,345 

103,250 
104,568 
105,765 
106,842 
107,802 
108,648 
109,  385 
110,020 
110,559 
111,010 
111,382 
111,683 
111,922 
112,108 
112,249 

202,935 
210,714 
218,040 
224,871 
231,172 
236,  922 
242,  100 
246,  702 
250,  739 
254,231 
257,207 
259,  705 
261,766 
263,438 
264,768 

141,940 
143,  317 
144,555 
145,658 
146,630 
147,  476 
148,204 
148,823 
149,341 
149,768 
150,114 
150,389 
150,603 
150,765 
150,  884 

27,  044 
27,049 
27,051 
27,052 
27,052 
27,  052 
27,052 
27,  052 
27,052 
27,052 
27.052 
27,  052 
27,052 
27,052 
27.052 

959,  830 
976,579 
991,748 
1,005,054 
1,016,749 
1,026,914 
1,035,633 
1,043,011 
1,049,164 
1,054,226 
1,058,337 
1,061,638 
1,064,258 
1,066,316 
1,067,912 

2,932,592 
2,932,592 
2,932,592 
2,932,592 
2,932,592 
2,932,592 
2,932,592 
2,932,592 
2,932,592 
2,  932,  592 
2,932,592 
2,932,592 
2,932,592 
2,932,592 
2,932,592 

*  For  definitions  of  classes  see  p.  112. 


121 


TABLE  XXXII— Concluded. 


C 

C 

IN 

<fH 

<4H 

£ 

A^Va 

b*   'o  c 

»z 

5% 

5  o 

0    . 

•-4 

0      . 

o 

<»u 

si 

E*°i«  • 

3«    v 

rt  8  A  S  P  « 

ri 

|S 

£.2 

r 

|1 

2a 
Q 

£S 

P 

|s 

P 

|i 

IB 

s-i  35 
-d  C 

as 

0 

|laSSS 

^SSgSS 

2Seo32 

O  D,  O  O-H  *j 

1985... 

$442,615 

$70,345 

$112.353 

$265,801 

$150.968 

$27,052 

$1,069,134 

$2,932,592 

last;  

442,615 

70,  345 

112.426 

266,  585 

151,022 

27.052 

,070,045 

2,932,592 

1987  

442.615 

70,345 

112,476 

267,  160 

151,056 

27,052 

,070,704 

2,932,592 

442,615 

70,345 

112,508 

267,567 

151,076 

27.052 

,071,163 

2,932,592 

1989  

442,615 

70,345 

112,527 

267,  843 

151,087 

27,052 

.071,469 

2,932,592 

1990 

442,615 

70,345 

112,537 

268,019 

151,092 

27,052 

,071,660 

2,932,592 

1991  

442,615 

70,345 

112,542 

268,  123 

151,094 

27,052 

,071,771 

2,932,592 

1992  

442,615 

70,  345 

112,544 

268,180 

151,095 

27,  052 

,071,831 

2,932,592 

1993  

442,615 

70,345 

112,545 

268,208 

151,095 

27,052 

,071,860 

2,932,592 

1994  

442,615 

70,345 

112,545 

268,217 

151,095 

27,052 

,071,869 

2,932,592 

1995 

442,615 

70.  345 

112,545 

268,221 

151,095 

27,052 

,071,873 

2,932,592 

1996  

442,615 

70.345 

112,545 

268,  222 

151,095 

27,052 

,071,874 

2,932.592 

1997 

442,615 

70,345 

113,545 

268.  222 

151,095 

27,052 

,071,874 

2,932,592 

Totals. 

$7,571,100 

$1,590,698 

$46,293,884 

$194.793.246 

$18.632,078 

$3,667.315 

$5,354,219 

$9.478.474 

TABLE  XXXIII — (Chicago  Firemen). 

SHOWING  THE  COMBINED  ANNUAL  PENSION  PAYMENTS  TO  ALL 
CLASSES,  AND  THE  PERCENTAGES  THESE  PAYMENTS  ARE  OF  TOTAL 
SALARIES.  THIS  TABLE  IS  FORMED  BY  COMBINING  RESULTS  IN 
TABLES  XXX,  XXXI  AND  XXXII,  AND  INCLUDES  ALL  PAYMENTS  TO 
PRESENT  PENSIONERS,  PRESENT  ACTIVE  SERVICE,  FUTURE  EN- 
TRANTS, AND  TO  THEIR  WIDOWS  AND  CHILDREN. 


Ag^-d 

A*o» 

£0* 

"o 

I* 

^a 

^    *••*>  rH 
^Q  ^Q    M 

^    C    ^    S         • 

>-<  «*"*  o  fj 

fl-a  o  d 

.2 

8S 

3    5^ 

^  O  JM 

P<     'CS  n3  Q_) 

d'tf  <u 

^    M 

£  %  V 

>> 

•°  "2  o 

_  .^   .j  rft 

*}  ^  r*  *£^  (H 

o  rt'>  *-< 

d  g 

t 

hri 

SP 

W  0)  fl<^ 

^  §      >  d 

-t-".rt       *  ^ 

3M^2 

->->  O 

S 

a'£rt 

v  r* 

hBrrt       . 

S^^-o 

u 
N 

V 

ill 

<u  <u  >*j  ri 

al^S 

l«s 

§«*« 

£  <u*j  «j 

°1 

l! 

^ 

c3 

»<« 

si 

ri  « 

•w^S 

°rtg 

§M£ 

£  O  <U 

ri-Mft 

ercenta, 
tributec 
ployees, 

oip  >.« 

ti  "-1  £  "° 

g  is  2-5: 

0  fl  4J  0 
^  0-C  fe 

<u  o+j  a 

PH 

PH 

PH 

PH 

0 

co 

PH 

PH 

PH 

1916... 

$352,512 

$  20,349 

$               0 

$    372,861 

$2,962.944 

.     12.6 

.0 

11.6 

1917.... 

342.068 

61,495 

144 

403,707 

2,983,664 

13.5 

.0 

12.5 

1918.... 

331,838 

101,733 

585 

434,  156 

3,008,867 

14. 

.0 

13.4 

1919.... 

320,958 

144,081 

1.353 

466,  392 

3,026,870 

15. 

.0 

14.4 

1920.  .  .  . 

311,029 

185,151 

2,478 

498,658 

3,042,501 

16. 

.0 

15.4 

1921.... 

301.546 

226,  103 

3,982 

531,631 

3,054,911 

17. 

.0 

16.4 

1922.... 

291,381 

266,603 

5,922 

563,906 

3,064,588 

18. 

.0 

17.4 

1923.... 

280,464 

306,696 

8,307 

595,467 

3,072,608 

19. 

.0 

18.4 

1924.... 

269,657 

345,907 

11,153 

626,  717 

3,079,515 

20. 

.0 

19.4 

1925.... 

258,786 

383,683 

14,479 

656,948 

3,083,060 

21.4 

.0 

20.4 

1926.... 

247,850 

420,739 

18,294 

686,  883 

3,086,261 

22.3 

.0 

21.3 

1927.... 

237,  187 

457,581 

22,610 

717,378 

3,087,713 

23.3 

.0 

22.3 

1928.... 

226,713 

493,993 

27,426 

748,  132 

3,087,083 

24.2 

.0 

23.2 

1929.... 

216,633 

527,  797 

32,741 

777,171 

3.086,652 

25.2 

.0 

24.2 

1930.... 

206,566 

559,948 

38,558 

805,072 

3,084,663 

26.1 

.0 

25.1 

1931.... 

196,496 

590,089 

44,871 

831,456 

3,081.934 

27.0 

.0 

26.0 

1932.... 

186,650 

618,929 

51.655 

857,  234 

3,078,443 

27.8 

.0 

26.8 

1933.... 

176,996 

643,869 

58.875 

879,  740 

3,073,112 

28.6 

.0 

27.6 

1934.... 

167,554 

667,644 

66,500 

901,698 

3.067,235 

29.4 

.0 

28.4 

1935.... 

158.263 

688,941 

74,500 

921,704 

3.061,543 

30.1 

.0 

29.1 

1936.... 

149.  148 

707.741 

82,842 

939,  731 

3,054,842 

30.8 

.0 

29.8 

1937.... 

140.110 

723.  572 

.95,498 

959,  180 

3,047,988 

31.5 

.0 

30.5 

1938.... 

131,171 

736,584 

109,449 

977,  204 

3,041,156 

32.1 

.0 

31.1 

1939.  .  .  . 

122.536 

746,679 

124,719 

993,934 

3.033,776 

33.0 

.0 

32.0 

1940.... 

114,216 

753.751 

141,349 

,000,  31  7 

3.026,310 

33.4 

.0 

32.4 

1941.... 

106.015 

756,631 

159,364 

,022,010 

3,019,906 

33.9 

.0 

32.9 

1012.... 

97,968 

758,745 

178,777 

,035,490 

3,012,475 

34.4 

.0 

33.4 

1943.... 

90,712 

756,  643 

199.602 

,046,957 

3,005,811 

34.8 

.0 

33.8 

1944.... 

82,809 

751,317 

221,842 

,055,968 

2,999,725 

35.2 

.0 

34.2 

1945.... 

75,648 

743.341 

245,481 

,064,470 

2,993,370 

35.6 

.0 

34.6 

1946.... 

68.  &30 

732.465 

270,500 

,071,795 

2,987,139 

35.9 

.0 

34.9 

1947  

62,406 

718.607 

296,868 

,077,881 

2,981,781 

36.1 

.0 

35.1 

1948.... 

56,281 

703.440 

324,521 

,084,242 

2,975,839 

36.4 

.0 

35.4 

1949.... 

50,  520 

683.868 

353.365 

,087.753 

2.970,709 

36.6 

.0 

35.6 

TABLE  xxxm— concluded. 


pfl 

^2id 

o  rt'^  J-i 

Cfi    Cfi 

Is. 

55  w  w 

C  0)  « 
'f'C  5? 

Is 

II 

d  o  -s  fl 

*J  ri     .75 

•2      .72 

o-a 

ctf 

a*2 

bjO-3    . 

1^ 

§  o,^  °  2 
.2     »d  "C1^ 

i*"j*«^ 

!JH> 

**d 

ss 

&s 

°gs 

§*£ 

rt^  « 
a>5>. 

ll-G-l 

Is3l*o 

£S>f38 

si*! 

<y  0>«->  rt 

fi  ,-H 

11 

•jsofe 
ri+j  a 

.2 

V-M'O 

^8-Sft 

JJJ 

& 

5 

OH 

O 

Cfl 

« 

fin 

AH 

1950.... 

$45,  142 

$661,624 

$    382,387 

$1,089,153 

$2,966,115 

36.7 

1.0 

35.7 

1951  .... 

40,118 

639,995 

414,  169 

,094,282 

2,961,396 

37.0 

1.0 

36.0 

1952.... 

35,473 

614.223 

445,831 

,095,527 

2,  957,  186 

37.1 

1.0 

36.1 

1953.... 

31,254 

588,554 

478,  143 

,097.951 

2,953,741 

37.2 

1.0 

36.2 

1954.... 

27,332 

560,878 

510,915 

,099,125 

2,948,237 

37.3 

1.0 

36.3 

1955.... 

23,801 

532,  152 

543,961 

,099,914 

2,947,165 

37.3 

1.0 

36.3 

1956.... 

20,594 

502,543 

577,  105 

,100,242 

2,944,675 

37.4 

1.0 

36.4 

1957.... 

17,757 

472,047 

610,  104 

.099,908 

2,942,827 

37.4 

1.0 

36.4 

1958.... 

15,223 

440,946 

642,810 

,098,979 

2.941,917 

37.4 

1.0 

36.4 

1959.  .  .  . 

12,962 

409,689 

675,063 

,097,714 

'    2,939,232 

37.4 

1.0 

36.4 

I960.... 

10,983 

379,995 

706,698 

,097,676 

2.937.854 

37.4 

1.0 

36.4 

1961  .... 

9,263 

349.662 

737,558 

,096,483 

2,936,698 

37.3 

1.0 

36.3 

1962.... 

7,775 

319,850 

767,  502 

,095,127 

2,935.604 

37.3 

1.0 

36.3 

1963.... 

6,499 

290,925 

796,418 

,093.842 

2,934,732 

37.3 

1.0 

36.3 

1964.... 

5,380 

263,063 

824,  173 

,092,616 

2,933,496 

37.2 

1.0 

36.2 

1965.... 

4,427 

236,  248 

850,631 

,091,306 

2,933,630 

37.2 

1.0 

36.2 

1966... 

3,626 

210,701 

.    875,673 

,090,000 

•     2,933,257 

37.2 

1.0 

36.2 

1967.... 

2,937 

186,637 

899,  197 

.088,771 

2,932,938 

37.1 

1.0 

36.1 

1968.... 

2,381 

164.  046 

921,107 

,087,534 

2,932.716 

37.1 

1.0 

36.1 

1969.... 

1,900 

143,  055 

941,333 

,086,288 

2.932,617 

37.0 

1.0 

36.0 

1970.... 

1,513 

123,794 

959,830 

,085,137 

2,932,592 

37.0 

1.0 

36.0 

1971  .... 

1,189 

106,  153 

976.579 

,083,921 

2,932,592 

37.0 

1.0 

36.0 

1972.... 

931 

90,221 

991,748 

,082,900 

2,932,592 

36.9 

1.0 

35.9 

1973.... 

714 

76,020 

1,005,054 

•     ,081,788 

2,932,592 

36.9 

1.0 

35.9 

1974.... 

540 

63,  448 

1,016,749 

,080,737 

2,932,592 

36.9 

1.0 

35.9 

1975... 

403 

52,448 

1,026,914 

.079,765 

2,932,592 

36.8 

1.0 

35.8 

1976.... 

292 

43,  028 

1,035,633 

,078,953 

2,932,592 

36.8 

1.0 

35.8 

1977.  .  .  . 

208 

34,729 

.043,011 

,077,948 

2,932,592 

36.8 

1.0 

35.8 

1978.... 

143 

27,755 

.049,164 

,077.062 

2,932,592 

36.7 

1.0 

35.7 

1979.... 

97 

21,915 

.054,226 

,076,238 

2,932,592 

36.7 

1.0 

35.7 

1980.... 

64 

17,064 

,058,337 

,075,465 

2,932.592 

36.7 

1.0 

35.7 

1981  .... 

39 

13,128 

,061,638 

074.805 

2.932,592 

36.7 

1.0 

35.7 

1982.... 

23 

9,949 

,064,258 

074,230 

2.932,592 

36.6 

1.0 

35.6 

1983.  .  .  . 

12 

7,422 

,066,316 

073,750 

2,932,592 

36.6 

1.0 

35.6 

1984.... 

7 

5,472 

.067,912 

073,391 

2,932,592 

36.6 

1.0 

35.6 

1985.... 

3 

3.'954 

,069.134 

073,091 

2,932,592 

36.6 

1.0 

35.6 

1986  

2,809 

,070,045 

072,854 

2,932,592 

36.6 

1.0 

35.6 

1987 

1,946 

.070,704 

072,650 

2,932,592 

36.6 

1.0 

35.6 

1988 

1,305 

,071,163 

072,468 

2,932,592 

36.6 

1.0 

35.6 

1989 

834 

,071,469 

,072,303 

2.932,592 

36.6 

1.0 

35.6 

1990 

513 

,071,660 

,072,173 

2,932,592 

36.6 

1.0 

35.6 

1991. 

297 

.071,771 

072,068 

2,932,592 

36.6 

1.0 

35.6 

1992 

158 

,071,831 

071  ,  989 

2,932,592 

36.6 

1.0 

35.6 

1993  

75 

,071,860 

071,935 

2,932,592 

36.6 

1.0 

35.6 

1994. 

27 

,071,869 

071,896 

2,932,592 

36.6 

1.0 

35.6 

1995 

9 

,071,873 

071,882 

2,932,592 

36.6 

1.0 

35.6 

1996.... 

3 

.071,874 

071,877 

2,932.592 

36.6 

1.0 

35.6 

1997 

1 

,071.874 

071,875 

2,932,592 

36.6 

1.0 

35.6 

Totals. 

$6,  760,  522 

!26,  656,  026 

$46,293,884 

$79.  710,  432 

$244,  283,  603 

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124 


THE  TEACHERS'  FUND  OF  CHICAGO. 


THE   BENEFITS. 

Service  pensions :  Pensions  of  $400  are  granted  to  all  who  choose 
to  retire  after  25  years  of  service,  the  last  15  being  in  Chicago. 

Disability  pensions :  Pensions  are  granted  to  those  retired  on 
account  of  disability  after  15  years  of  service,  the  last  9  being  in 
Chicago.  The  amount  of  the  disability  pension  is  such  that  its  ratio 
to  $400  equals  the  ratio  of  the  contributions  of  the  individual  to  $450. 

Teachers  retired  under  previous  acts  have  their  pensions  gradu- 
ated so  as  to  receive  not  less  than  $320  nor  more  than  the  maximum 
benefit  herein  named. 

DATA   ON    MALES    AND   FEMALES    KEPT   SEPARATE. 

In  this  service  both  sexes  are  largely  represented,  and  as  the 
average  age  of  entering  this  service  was  very  much  lower  for  females 
than  for  males  it  seemed  advisable  to  treat  them  separately  in  this 
investigation.  The  results  show  a  decided  difference  in  costs  per 
individual  for  men  and  women.  This  difference  is  doubtless  due  in 
part  to  the  facts  that  the  male  teachers  receive  on  the  average  higher 
salaries  than  the  female  teachers  and  that  the  higher  the  salary  the 
less  is  a  person  inclined  to  accept  a  pension  at  an  early  age. 

Table  XXXV  below,  gives  a  summary  of  the  results  of  the  tabu- 
lation of  the  data  on  female  teachers,  and  Table  XXXVI,  p.  125,  on 
the  male  teachers. 

TABLE  XXXV. —  (Female  Teachers). 

ACTUAL  EXPERIENCE  WITH  THOSE  WHO  HAVE  BEEN  IN  ACTIVE  SERV- 
ICE WITHIN  THE  PERIOD  OF  JANUARY  1,  1906,  AND  JANUARY  1,  1916. 


(0 

(2) 

(3) 

(4) 

(5) 

(6) 

(7) 

(8) 

(9) 

(10) 

(11) 

6 
4»  , 

en     "**""' 

5 

Survivors  of  Jan.  1,  1906, 
not  on  active  list  Jan. 
1,  1916,  with  ages  as  of 
Jan.  1,  1906. 

Entrants  still  in  active 
service,  with  ages  at 
entrance. 

Entrants  withdrawn 
from  active  list  before 
Jan.  1,  1916,  with  ages 
at  entrance. 

Withdrawals  by  resig- 
nation or  dismissal, 
with  ages  at  with- 
drawal. 

Deaths,  with  ages  at 
death. 

Disability  retirements, 
with  ages  at  retire- 
ment. 

Service  retirements, 
with  ages  at  retire- 
ment. 

Total  decrements.  Cols. 
(6)+<7)+(8)+<9>. 

CD  cd 

-'£2 

^   Oj 

In  *•*  ° 
'S  RJ  <3 

w 

17.. 

2 

6 

1 

18  • 

5 

13 

1 

, 

19.. 

7 

no 

11 

20 

16 

1 

420 

2 

2 

20 

38 

12 

560 

122 

12 

12 

61 

22 

65 

400 

94 

38 

38 

144 

23-. 

100 

42 

198 

55 

48 

48 

223 

etc       

Detail 

for 

each 

age. 

Totals  

3,712 

1,681 

3,298 

841 

1,990 

163 

53 

316 

2,522 

7.010 

125 


TABLE  XXXVI.— (Male  Teachers). 

ACTUAL,  EXPERIENCE  WITH  THOSE  WHO  HAVE  BEEN  IN  ACTIVE  SERV- 
ICE WITHIN  THE  PERIOD  OF  JANUARY  1,  1906,  AND  JANUARY  1,  1916. 


(1) 

(2) 

(8) 

(4) 

(5) 

(6) 

(7) 

(8) 

(9) 

(10) 

(11) 

<u 
bo 

< 

fis 
^ 

03  »j  bg 

•"s^  rt 
*0  <Uf\& 

—    ^  •*-*  Qi 

i2-3£- 

0  0  ?_- 

>  <A    .    . 
'£     «  C 
g§2£ 
OQ 

m 

~l* 

r3  (D  flj 

£-5*  - 
««•  fcg 

^I'- 
ll:! 

00 

Entrants  still  in  active 
service,  with  agres  at 
entrance. 

Entrants  withdrawn 
from  active  list  before 
Jan.  l,  1916,  with  agres 
at  entrance. 

Withdrawals  by  resig- 
nation or  dismissal, 
with  ag-es  at  with- 
drawal. 

Deaths,  with  agres  at 
death. 

Disability  retirements, 
with  ages  at  retire- 
ment. 

Service  retirements, 
with  ag-es  at  retire- 
ment. 

Total  decrements.  Cols. 
(6)+(7)+(8)+(9). 

Existing  Jan.  1,  1916  on 
active  list  with  ages 
as  of  Jan.  1,  1916. 

19 

5 

•  >,) 

13 

3 

21 

18 

3 

t 

1 

0.) 

1 

11 

3 

4 

4 

6 

23 

2 

28 

2 

1 

1 

7 

0  } 

5 

2 

16 

1 

o 

0 

14 

25 

5 

1 

13 

2 

5 

1 

6 

11 

Etc. 

Detail 

for 

each 

agre. 

Totals  

368 

110 

376 

53 

113 

27 

3 

20 

163 

744 

DETERMINATION   OF  RATES   OF   CHANGES   ON   WHICH    COST   OF   PENSIONS 

DEPENDS. 

In  Table  XXXVII  below,  are  shown  graduated  rates  and  proba- 
bilities for  female  teachers,  and  in  Table  XXXVIII,  p.  126,  for  male 
teachers.  It  may  be  stated  here  that  the  rates  of  disability  retirements 
among  the  female  teachers  are  sufficiently  high  to  warrant  our  making 
use  of  them,  but  that  in  the  case  of  the  male  teachers  they  are  too  low 
to  give  a  criterion  on  which  to  base  any  calculations.  We  accordingly 
classed  male  disability  pensioners  with  male  service  pensioners. 

TABLE  XXXVIL— (Female  Teachers). 


Age. 

Rates  of 
withdrawal 
by   resigna- 
tion and  dis- 
missal. 

Rates  of 
mortality 
in  active 
service. 

Rates  of 
disability 
retire- 
ment. 

Rates  of 
service  re- 
tirement. 

Rates  of 
mortality 
among  dis- 
ability pen- 
sioners. 

Rates  of 
mortality 
among- 
service 
pensioners. 

20 

0  0035 

0  00060 

21 

0  0100 

0  00070 

22 

0  0213 

0  00078 

23 

0  0310 

0  00085 

24 

0  0460 

0  00092 

25 

0  0551 

0  00100 

26 

0  0585 

0  00109 

27 

0  0608 

0  00116 

28 

0  0815 

0  00123 

29  

0.0611 

0.00131 

30 

0  0594 

0  00140 

31 

0  0545 

0  00148 

32 

0  0490 

0  00157 

33 

0  0448 

0  00165 

34 

0.0415 

0  00173 

35 

0  0387 

0  00182 

1      o  00020 

36  

0.0359 

0  00190 

0  00055 

37 

0  0330 

0  00200 

0  00085 

38 

0  0301 

0  00213 

0  00110 

0  0241 

39 

0  0272 

0  00227 

0  00131 

0.0244 

40 

0  0245 

0  00245 

0  00153 

0  0247 

41   

0.0216 

o  oo-v,r> 

0  00174 

0.0250 

42 

0  0191 

0  00288 

0  00192 

0  0042 

0  0253 

0  01165 

126 


TABLE    XXXVII— Concluded. 


Agre. 

Rates  of 
withdrawal 
by  resigna- 
tion and  dis- 
missal. 

Rates  of 
mortality 
in  active 
service. 

Rates  of 
disability 
retire- 
ment. 

Rates  of 
service  re- 
tirement. 

Rates  of 
mortality 
among  dis- 
ability pen- 
sioners. 

Rates  of 
mortality 
amongr 
service 
pensioners. 

43. 

0  0174 

0  00313 

0  00208 

0  0057 

0  0^*57 

0  01195 

44  

0.0159 

0  00340 

0  00219 

0  0066 

0  0260 

0  01225 

45  

0  0146 

0  00370 

0  00232 

0  008° 

0  0264 

0  01265 

46 

0  0135 

0  00399 

0  00940 

0  0096 

0  0268 

0  01324 

47  
48  
49  

0.0125 
.0.0115 
0.0109 

0.00432 
0.00467 
0  00501 

0.00247 
0.00248 
0  00240 

0.0110 
0.0127 
0  0144 

0.0272 
0.0278 
0  0283 

0.01374 
0.01427 
0  01481 

50  . 

0  0101 

0  00547 

0  00212 

0  0164 

0  0290 

0  01533 

51  
58  

0.0095 
0  0089 

0.00592 
0  00642 

0.00199 
0  00198 

0.0185 
0  0210 

0.0296 
0  0302 

0.01585 
0  01642 

53 

0  0083 

0  00695 

0  00208 

0  0^40 

0  0311 

0  01694 

54  

0  0079 

0  00755 

0  00237 

0  0270 

0  0320 

0  01753 

55 

0  0075 

0  00820 

0  00983 

0  0305 

0  0329 

0  01812 

56  

0  0071 

0.00891 

0  00312 

0.0339 

0  0340 

0  01873 

57  

0  0068 

0  00961 

0  00318 

0  0375 

0  0350 

0  01938 

58  

0.0065 

0.01036 

*      0.00312 

0.0415 

0.0363 

0  02010 

59  
60 

0.0062 
0  0058 

0.01116 
0  01200 

0.00292 
0  00258 

0.0462 
0  0512 

0.0377 
0  0392 

0.02092 
0  02179 

61  
62  .. 

0.0055 
0  0052 

0.01315 
0  01462 

0.00212 
0  00145 

0.0564 
0  0618 

0.0409 
0  0427 

0.02288 
0  02404 

63 

0  0049 

0  01640 

0  00105 

0  0671 

0  0448 

0  0^546 

64  
65 

0.0046 
0  0043 

0.0181 
0  0199 

0.00068 
0  00038 

0.0732 
0  0806 

0.0467 
0  0488 

0.02710 
0  02900 

66  

67.. 

0.0040 
0  0036 

0.0218 
0  0238 

0.00010 

0.0890 
0  0992 

0.0513 
0  0539 

0.03121 
0  03370 

68  

0.0031 

0.0261 

0.1130 

0.0569 

0  03664 

69  

0  0025 

0  0285 

0  1310 

0  0600 

0  03991 

70 

0  0017 

0  0311 

0  154 

0  0633 

0  04358 

71  

0.0008 

0  0339 

0  185 

0  0671 

0  04773 

72           .     . 

0  0369 

0  209 

0  0714 

0  05226 

73  

0  0403 

0.235 

0.0759 

0  05731 

74  

0  0439 

0  258 

0  0810 

0  06285 

75 

0  0478 

0  283 

0  0866 

0  06889 

76  

0  0520 

0  323 

0  0930 

0  07551 

77  ... 

0  0575 

0  382 

0  1000 

0  08260 

78 

0  0652 

0  473 

0  1080 

0  09019 

79  

0  0760 

0  600 

0  1165 

0  09882 

80 

0  852 

0  1260 

0  10793 

81  

1  000 

0.1370 

0.11771 

82  .. 

0  1483 

0  12835 

83 

0  1605 

0  13970 

84  

0.1725 

0.15207 

85 

0  1851 

0  16524 

86  

0.1990 

0.17946 

87  ...    . 

0  2140 

0  19466 

88  • 

0  2290 

0  21096 

89  

0.2450 

0.22835 

90 

0  2630 

0  24690 

91  

0.2825 

0.26664 

92  

0.3030 

0.28759 

93 

0  3240 

0  30979 

94  

0.3465 

0.33321 

95  . 

0.3710 

0.35787 

96 

0  3970 

0.38375 

97  

0.4250 

0.41082 

98 

0.4550 

0.43879 

99 

0  4880 

0.46820 

100 

0  5240 

0  49836 

TABLE  XXXVIIL— (Male  Teachers). 


Ag-e. 

Rates  of  with- 
drawal by 
resignation 
or  dismissal. 

Rates  of  mor- 
tality in 
active 
service. 

Rates  of  ser- 
vice retire- 
ment. 

Rates  of  mor- 
tality among- 
pensioners. 

19 

0  0315 

0.00112 

20 

0  0328 

0  00128 

21 

0  0340 

0  00144 

22 

0  0349 

0.00165 

23 

0  0352 

0  00182 

127 

TABLE  XXXVIII — Concluded. 


Agre. 

Rates  of  with- 
drawal by 
resignation 
or  dismissal. 

Rates  of  mor- 
tality in 
active 
service. 

Rates  of  ser- 
vice retire- 
ment. 

Rates  of  mor- 
tality among" 
pensioners. 

24.. 

0.0363 

0.00198 

25 

0  0366 

0  00221 

26 

0  0368 

0  00238 

27  . 

0  0372 

0  00263 

28 

0  0372 

0  00297 

29.. 

0  0370 

0  00350 

30 

0  0363 

0  00432 

P.. 

0  0359 

0  00540 

• 

0  0355 

0  00611 

K. 

0  0340 

0  00629 

34.. 

0  0325 

0  00608 

35 

0  0305 

0  00585 

36.. 

0  0285 

0  00560 

37 

0  0255 

0  00533 

38... 

0  0232 

0  00483 

39 

0  0214 

0  00409 

40... 

0  0198 

0  00330 

41 

0  0182 

0  00317 

42.. 

0  0168 

0  00282 

43  . 

0  0157 

0  00275 

44  

0  0146 

0  00265 

45.. 

0  0135 

0  00257 

46 

0  0125 

0  00°75 

47.. 

0  0117 

0  00325 

48 

0  0108 

0  00350 

0  0025 

0  0389 

49... 

0  0100 

0  00380 

0  0045 

0  0391 

50.. 

0  0090 

0  00451 

0  0056 

0  0393 

51... 

0  0080 

0  00490 

0  0062 

0  0395 

52.. 

0  0071 

0  00528 

0  0070 

0  0397 

53...     . 

0  0062 

0  00572 

0  0080 

0  0399 

54.. 

0  0053 

0  Q0692 

0  0090 

0  0402 

55... 

0  0044 

0  00695 

0  0105 

0  0407 

56.. 

0  0035 

0  00798 

0  0113 

0  0411 

57  

0  0025 

0  00876 

0  0126 

0  0418 

58.. 

0  0016 

0  00960 

0  0141 

0  0426 

59  

0  0008 

0  01044 

0  0156 

0  0436 

60.. 

0  0004 

0  01134 

0  017° 

0  0448 

61. 

0  0001 

0  01343 

0  0189 

0  0460 

62.. 

0  01554 

0  0205 

0  0476 

63  

0  01800 

0  0220 

0  0494 

64  

0  02080 

0  0238 

0  0516 

65  '.  

0  02388 

0  0259 

0  0538 

66...                             .... 

0  02565 

0  0982 

0  0566 

67  

0  09850 

0  0311 

0  0593 

68...    .                          .   . 

0  03180 

0  0345 

0  0626 

69  

0  03380 

0  0382 

0  0660 

70  

0  03600 

0  0427 

0  0698 

71  

0  03874 

0  0500 

0  0738 

72  

0  04237 

0  0650 

0  0778 

73  

0  04723 

0  0900 

0  0823 

74  

0  05366 

0  1300 

0  0875 

75  

0  06201 

0  1900 

0  0933 

76  

0  07261 

0  2600 

0  0999 

0  08581 

0  375 

0  1070 

78  

0  10196 

0  75 

0  1152 

79  

0  12139 

0  88 

0  1248 

80  

0  1358 

81  

0  1497 

82  

0  1647 

83  

0  1820 

84  

0  2020 

85  

0  2250 

86  

0  2525 

87  

0.2840 

89  

0.3180 
0  3580 

90  

0  4040 

91  

0  4560 

92  

0  5110 

93  

0  5750 

94  

0  6500 

95.... 

0  7340 

96  

0  8180 

97  

0  9020 

98  

0  9850 

128 

The  experience  of  the  service  relating  to  mortality  among  service 
and  disability  pensioners  was  too  meagre  to  serve  as  a  basis  for  deter- 
mining these  rates  of  mortality ;  consequently,  we  used  the  rates  of  the 
New  York  teachers'  experience. 

ACTIVE    SERVICE   TABLES   AND   SALARY    SCALES. 

The  rates  given  in  Tables  XXXVII  and  XXXVIII,  pp.  125  and 
126  respectively,  were  used  to  construct  the  active  service  tables 
Tables  XXXIX  and  XL,  on  pp.  128  and  129,  respectively.  The  salary 
scales  were  prepared  as  in  the  cases  of  the  police  and  firemen's  funds 

TABLE  XXXIX.— (Female   Teachers). 
ACTIVE  SERVICE  TABLE  AND  SALARY  SCALE. 


cu 

(2) 

(3) 

(4) 

(5) 

(6) 

(7) 

(8) 

Age. 

Active 
service. 

With- 
drawals. 

Deaths. 

Dis- 
ability 
retire- 
ments. 

Service 
retire- 
ments. 

Total 
decre- 
ments. 
Cols.  3+ 
4+5-4  6. 

Salary 
scale 
from 
active 
service 
Jan.  1, 
1916. 

20... 

100  000 

350 

60 

410 

$    745 

21  

99  590 

996 

70 

1  066 

765 

22 

98  524 

2  099 

77 

2  176 

790 

23  

96  348 

2  987 

82 

3  069 

815 

24 

93  279 

4  291 

86 

4  377 

850 

25  

88  902 

4  899 

89 

4  988 

880 

26. 

83  914 

4  909 

91 

5  000 

920 

27 

78  914 

4  798 

92 

4  890 

965 

28... 

74  224 

4  552 

91 

4  643 

1  010 

29 

69  381 

4  239 

91 

4  330 

1  050 

30  

65  051 

3  864 

91 

3  955 

1,095 

31 

61  096 

3  330 

90 

3,490 

1  135 

32  

57  676 

2,826 

90 

2  9T6 

1,170 

33  

54  760 

2  453 

90 

2  543 

1.210 

34 

5°  217 

2  167 

90 

2  257 

1  240 

35  

49  960 

933 

91 

10 

2  034 

1,265 

36 

47  926 

721 

91 

26 

1,290 

37  

46,  088 

521 

92 

39 

1*652 

1,315 

38  

44  436 

338 

95 

49 

1  482 

1  ,  340 

39 

42  954 

168 

98 

56 

1  322 

1,358 

40  

41  632 

020 

102 

64 

1,186 

1,370 

41 

40  446 

874 

107 

70 

1  051 

1,385 

42 

39  395 

752 

113 

76 

165 

1  106 

1,395 

43  

38  289 

666 

120 

80 

218 

1,084 

1,410 

44 

37  905 

592 

126 

81 

246 

1,045 

1,420 

45  

36,  160 

528 

134 

84 

297 

1,043 

1,430 

46 

35  117 

474 

140 

84 

337 

1,035 

1,445 

47 

34  082 

496 

147 

84 

375 

1,032 

1,460 

48..             

33,  050 

380 

154 

82 

420 

1,036 

1,470 

49 

32  014 

349 

160 

77 

461 

1,047 

1,488 

50  
51...       . 

30,967 
29  911 

313 

284 

169 

177 

66 

60 

508 
553 

1,056 
1,074 

1,504 
1,520 

52 

28  837 

257 

185 

57 

606 

1,105 

1,540 

53  

27,732 

230 

193 

58 

666 

1,147 

1,560 

54 

26  585 

210 

201 

63 

718 

1,192 

1,585 

55 

25  393 

190 

208 

72 

774 

1,244 

1,603 

56  

24,  149 

171 

215 

75 

816 

1,277 

1,622 

57 

22  872 

156 

220 

73 

858 

1,307 

1,640 

58  

21,565 

140 

223 

67 

895 

1,325 

1,658 

59  

20,  240 

125 

226 

59 

935 

1,345 

1,675 

60 

18  895 

110 

227 

49 

987 

1,353 

1,690 

61  

17,542 

96 

231 

37 

989 

1,353 

1,713 

62  

16,  189 

84 

237 

23 

1,000 

1,344 

1,735 

63 

14,845 

73 

243 

16 

996 

1,328 

1,758 

64 

13  517 

62 

245 

9 

989 

1,305 

1,785 

65  

12,212 

53 

243 

5 

984 

1,285 

1,815 

66 

10,  927 

44 

238 

1 

973 

1,256 

1,855 

67 

9  671 

35 

230 

959 

1,224 

1,908 

68  

8,447 

26 

220 

955 

1,201 

1,965 

69                       ..                  .       . 

7,246 

18 

207 

949 

1,174 

2,035 

70 

6  072 

10 

189 

935 

1,134 

2,108 

71 

4  938 

4 

167 

914 

1,085 

2,210 

72  

3,853 

142 

805 

947 

2,318 

129 


TABLE  XXXIX— Concluded. 


(1) 

(2) 

(3) 

(4) 

(5) 

(6) 

(7) 

(8) 

Agre. 

Active 
service. 

With- 
drawals. 

Deaths. 

Dis- 
ability 
retire- 
ments. 

Service 
retire- 
ments. 

Total 
decre- 
ments. 
Cols.  3+ 
4+5+6. 

Salary 
scale 
from 
active 
service 
Jan.  1, 
1916. 

73                

2  906 

117 

683 

800 

$2  475 

74 

2  106 

92 

543 

635 

2  775 

75               

1,471 

70 

416 

486 

3  040 

76 

985 

51 

318 

369 

3  318 

77 

616 

35 

235 

970 

3  600 

78 

346 



23 

164 

187 

79  

159 

12 

95 

107 

80 

52 

44 

44 

81  

8 

g 

g 



Totals  

65,193 

8,286 

1  752 

24  769 

100  000 

TABLE  XL. —  (Male    Teachers). 
ACTIVE  SERVICE  TABLE  AND  SALARY  SCALE. 


(1) 

(2) 

(3) 

(4) 

(5) 

(6) 

Age. 

Active 
service. 

With- 
drawals. 

Deaths. 

Retire- 
ments. 

Total  de- 
crements. 
Cols.3+4+5. 

Salary  scale 
from  active 
service  Jan. 
1,  1916. 

19... 

100,000 

3,150 

112 

3  262 

20  

96,738 

3  173 

124 

3  297 

21 

93  441 

3  177 

135 

3  312 

$1  020 

22  

90,129 

3  146 

149 

3  295 

040 

23 

86  834 

3  057 

158 

3  215 

O70 

24  

83,619 

3  035 

166 

3  201 

120 

25 

80  418 

2  943 

178 

3  121 

MM 

26  

77,297 

2  845 

184 

3  o*>9 

220 

•27  

74,268 

2,763 

195 

2  958 

260 

28  

71,310 

2  653 

212 

2  865 

325 

29  

68  445 

2  532 

240 

2  772 

O-JK 

30  

65,673 

2  384 

284 

2  668 

430 

31  

63,005 

2,262 

340 

2  602 

490 

32 

60  403 

2  144 

369 

2     CIO 

33  

57.890 

,968 

364 

2  332 

1  600 

34  

55,558 

806 

338 

2  144 

1  650 

35  

53,414 

,629 

312 

1  941 

1  700 

36  

51.473 

467 

288 

1  755 

1  740 

37  

49,718 

,268 

265 

1  533 

1  790 

38.... 

48,185 

118 

2H3 

1  351 

1  840 

39  

46,834 

,002 

192 

1  194 

1  900 

40  

45,640 

904 

151 

1  055 

1  960 

41  

44,585 

811 

141 

952 

2  010 

42  

43,633 

733 

123 

856 

2  050 

43  

42,777 

672 

118 

790 

2  110 

44  

41,987 

613 

111 

724 

2  160 

45... 

41,263 

557 

106 

663 

2  225 

46  

40,600 

508 

112 

620 

2.275 

47  
48  

39,980 
39  382 

468 
425 

130 
138 

98 

598 
661 

2,325 

2     OUT) 

49.. 

38  721 

387 

147 

70S 

50  

38  013 

342 

171 

213 

726 

2400 

51... 

37  2g7 

298 

183 

231 

712 

52  

36,575 

260 

193 

256 

709 

2fiOO 

53  

35  866 

292 

205 

287 

714 

2ftcn 

54 

35  152 

186 

219 

316 

55  

34  431 

151 

240 

344 

79C 

56 

33  696 

118 

969 

381 

7ft8 

57... 

32  928 

88 

988 

415 

785 

2(\K(\ 

58... 

32  143 

51 

309 

453 

Ciq 

59 

31  330 

25 

007 

400 

841 

60  

30  489 

12 

346 

524 

882 

61 

29  607 

3 

qqu 

CCf) 

not 

62... 

28  646 

445 

587 

1  032 

63  

27.614 



497 

608 

1.105 

3,300 

130 


TABLE   XL — Concluded. 


(1) 

(2) 

(3) 

(4) 

(5) 

(6) 

Age. 

Active 
service. 

With- 
drawals. 

Deaths. 

Retire- 
ments. 

Total  de- 
crements. 
Cols.  3+445. 

Salary  scale 
from  active 
service  Jan. 
1,  1916. 

64... 

26  509 

551 

631 

1  182 

$3  330 

65 

25  327 

592 

656 

1  248 

3  375 

66  

24,079 

618 

679 

297 

3  430 

67 

22  782 

649 

709 

358 

3  480 

68 

21  424 

681 

739 

4->0 

3  530 

69  

20,004 

676 

764 

,440 

3  590 

70 

18  564 

668 

793 

461 

3  630 

71  

17,  103 

663 

855 

,518 

3  680 

72 

15,585 

660 

,013 

673 

3  730 

73 

13  912 

657 

252 

909 

3  780 

74  

12,003 

644 

,560 

2  204 

3  830 

75 

9  799 

608 

862 

2  470 

3  880 

76  

7,329 

532 

,906 

2,438 

3  930 

77                       

4,891 

420 

,834 

2  254 

3  960 

78  

2,637 

269 

2,044 

2,313 

3,900 

79  

324 

39 

285 

324 

4  010 

Totals  

57,350 

19.  132 

23,  518 

100,000 

CONTRIBUTIONS   OF   TEACHERS. 

Teachers  contribute  from  their  salaries  $5  for  each  of  the  first 
five  years  of  service,  $10  for  each  of  the  second  five,  $15  for  each 
of  the  third  five,  and  $30  each  year  thereafter  while  in  active  service. 
Thus,  the  contributions  of  individual  teachers  depend  on  the  amount 
of  service  but  are  independent  of  the  salary  of  the  individual.  In  our 
treatment  of  the  pension  cost  for  the  future  service,  we  found  it  neces- 
sary to  form  an  average  contribution  scale  for  each  age.  This  is  given 
in  Tables  XLI  and  XLII,  below. 

TABLE  XLI.— (Female  Teachers). 
AVERAGE    CONTRIBUTION    SCALE    WITH    RESPECT    TO    AGES. 


Ag-e. 

Contri- 
butions. 

Age. 

Contri- 
butions. 

Age. 

Contri- 
butions. 

Ag-e. 

Contri- 
butions. 

Ag-e. 

Contri- 
butions. 

Agre. 

Contri- 
butions. 

20... 

$5  00 

30.. 

$11  90 

40.. 

$24  50 

50.. 

$28  25 

60.. 

$2937 

70.. 

$29  88 

21... 

5  00 

31.. 

13  10 

41.. 

25  60 

51.. 

28  37 

61.. 

29  42 

71.. 

29  90 

22.. 

5  03 

32.. 

14  35 

42.. 

26  20 

52.. 

28  50 

62.. 

29  50 

72.. 

29  92 

23.. 

5  20 

33.. 

15  55 

43.. 

26  65 

53.. 

28  65 

63.. 

29  57 

73.. 

29  93 

24.. 

5  55 

34.. 

16  80 

44.. 

26  95 

54.. 

28  83 

64.. 

29  61 

74.. 

29  95 

25.. 

5  95 

35.. 

18  25 

45.. 

27  20 

55.. 

28  92 

65.. 

29  65 

75., 

29  97 

26.. 

6  75 

36.. 

19  50 

46.. 

27  45 

56.. 

29  04 

69.. 

29  70 

76.. 

29  99 

27.. 

8  00 

37.. 

20  75 

47.. 

27  65 

57.. 

29  15 

67.. 

29  75 

77.. 

30  00 

28.. 

9  25 

38.. 

22  00 

48.. 

27  85 

58.. 

29  23 

68.. 

29  80 

29..   . 

10  60 

39.. 

23  20 

49.. 

28  05 

59.. 

29  32 

69.. 

29  85 

TABLE  XLII. —  (Male  Teachers). 
AVERAGE    CONTRIBUTION    SCALE   WITH    RESPECT    TO    AGES. 


Age- 

Contribu- 
tions. 

Ag-e. 

Contribu- 
tions. 

Age. 

Contribu- 
tions. 

Age. 

Contribu- 
tions. 

Age. 

Contribu- 
tions. 

20.  ... 

$5  00 

30... 

$  7  50 

40... 

$17  80 

50.   . 

$24  70 

60.... 

$29  00 

21.... 

5  00 

31... 

8  20 

41.... 

18  80 

51.   . 

25  20 

61.... 

29  30 

22.... 

5  00 

32... 

8  90 

42  

19  50 

52.   . 

25  70 

:  62.... 

29  60 

23.    .. 

5  10 

33... 

9  70 

43.... 

20  30 

53.   . 

26  20 

!  63.... 

29  80 

24.    .. 

5  20 

34... 

10  70 

44  

21  20 

54.   . 

26  70 

64.... 

29  90 

25.    .. 

5  30 

35... 

11  70 

45.... 

22  20 

55.   . 

27  10 

65.... 

30  00 

26.    .. 

5  50 

36... 

12  80 

46.... 

22  80 

56.   . 

27  50 

66.... 

30  00 

27.    .. 

5  80 

37... 

14  20 

47  

23  40 

57.   .. 

27  90 

28  

6  30 

38.... 

15  50 

48.... 

23  80 

58.   .. 

28  30 

29  

6  80 

39.... 

16  70 

49... 

24  30 

59.   .. 

28  70 

131 


DISABILITY    PENSION    SCALE. 

The  amount  of  the  disability  pension  is  such  that  its  ratio  to  $400 
equals  the  ratio  of  the  contributions  of  the  individual  to  $450.  From 
the  average  of  the  disability  pensions  at  given  ages,  we  formed  the 
graduated  scale  shown  in  Table  XLIII,  below.  This  scale  we  used 
in  the  calculation  of  the  probable  cost  of  pensions  to  future  entrants 
upon  disability  pensions. 

TABLE  XLIII.— (Female  Teachers). 

AVERAGE    DISABILITY    PENSION    SCALE    CLASSIFIED    WITH    REGARD    TO 

AGE. 


Agre. 

Pension. 

Age. 

Pension. 

Age. 

Pension. 

Age. 

Pension. 

33  

$166 

43.   . 

$293 

53... 

$305 

63.. 

$310 

34  

171 

44. 

297 

54...  . 

305 

64..  . 

310 

35  

180 

45. 

299 

55...  . 

306 

65..  . 

311 

36  

193 

46. 

301 

56...  . 

306 

66..  . 

311 

37..  .. 

210 

47. 

302 

57...  . 

307 

67..  . 

312 

38  

230 

48. 

302 

58...  . 

307 

68..  . 

312 

39  

246 

49. 

303 

59...  . 

308 

69..  . 

313 

40  

261 

50. 

303 

60...  . 

308 

70..  .. 

313 

41  . 

279 

51. 

304 

61...  . 

309 

42 

288 

52.  . 

304 

62...  . 

309 

NUMBER   AND    PRESENT    PENSIONS    OF    PENSIONERS. 

In  Tables  XLIV  and  XLV,  below,  are  shown  the  number  and 
present  pensions  of  female  pensioners,  while  Table  XLVI,  p.  135, 
shows  the  same  for  male  pensioners.  Since  there  is  only  one  male 
disability  pensioner,  he  is  included  with  the  service  pensioners. 

TABLE  XLIV.— (Female  Teachers). 

THE  NUMBER  AND  PENSIONS  OF  SERVICE  PENSIONERS  AS  OF  JANUARY 
1,   1916,  CLASSIFIED  WITH  REGARD  TO  AGE. 


Age. 

Number. 

Total 
pensions. 

Afire. 

Number. 

Total 
pensions. 

Agre. 

Number. 

Total 
pensions. 

42... 
43 

1 

$      400 

58... 
59 

23 
23 

$8,174 
8,293 

74... 
75  .. 

6 
3 

$2,173 
1,052 

44. 

45. 
46. 
47. 
48. 
49. 
50. 
51. 
52 

2 
4 
5 
6 
12 
11 
18 
23 
26 

767 
1,600 
2,000 
2,296 
4,518 
3,977 
6,394 
8.476 
9  375 

60... 
61... 
62... 
63... 
64... 
65.... 
66.... 
67.  ... 
68 

25 
14 
18 
15 
12 
17 
11 
5 
U 

9,116 
5.138 
6,623 
5,637 
4.483 
6,572 
4,280 
1.970 
4  320 

76... 

77... 
78... 
79... 
80... 
81... 
82... 
83... 
84 

9 
5 
1 
4 
1 
1 
4 
3 

3.323 
1.753 
400 
1,480 
370 
370 
1,510 
1,059 

53. 
54.. 
55 

18 
28 
16 

6.366 
10.  459 
5  806 

69.... 
70.  ... 
71 

10 
12 

3,733 
4,576 
1  905 

85... 
86... 

1 
2 

370 
676 

56.. 
57.. 

19 
17 

7,053 
6,470 

72.... 
73.... 

12 

8 

4,275 
3,102 

Totals 

467 

$172.690 

TABLE  XLV.— (Female  Teachers). 

THE  NUMBER  AND  PENSIONS   OF  DISABILITY   PENSIONERS   AS   OF  JAN- 
UARY   1,    1916,    CLASSIFIED  WITH   REGARD   TO    AGE. 


Ag-e. 

Number 

Total 
pensions. 

Agre. 

Number. 

Total 
pensions. 

Age. 

Number. 

Total 
pensions. 

36...     . 
38... 
40... 
41... 
42... 
43... 
44... 
45 

4 

$153 
150 
587 
210 
213 
168 
917 
181 

48.. 
49..     . 
50..     . 
51..     . 
52..     . 
53.  .     . 
54  
55 

3 
I 

2 
2 
1 
3 
2 

$1.016 
1,176 
653 
628 
325 
804 
582 
1  815 

58... 
59  
60.  .   .. 
61..   .. 
64..   .. 
68..   .. 
71..    .. 

3 
4 

1 
1 
1 
1 
1 

$    746 
1.168 
162 
328 
168 
370 
350 

46.... 
47  

2 
2 

562 
675 

56  
57  

2 
1 

741 
144 

Totals 

54 

$14.992 

132 

CLASSES   OF   PENSIONERS,    PRESENT   AND   FUTURE. 

In  making  our  calculations,  the  whole  group  under  observation, 
both  male  and  female,  was  divided  into  three  classes,  as  follows: 

1.  Those  on  the  pension  roll  January  1,  1916. 

2.  Those  in  active  service  January  1,  1916. 

3.  Those  who  enter  service  after  January  1,  1916. 

On  account  of  the  fact  that  teachers  retired  under  previous  act 
have  their  pensions  graduated  so  as  to  receive  not  less  than  $320  noi 
more  than  the  maximum  benefit  provided  by  the  present  law,  not  al 
service  pensioners  on  the  roll  at  present  receive  $400. 

THOSE  ON   THE   PENSION   ROLL  JANUARY   1,    1916. 

In  Table  XLVII,  p.  135,  is  shown  a  yearly  valuation  of  the  future 
costs  for  female  pensioners  on'  the  pension  roll,  January  1,  1916.  The 
yearly  future  costs  for  male  pensioners,  however,  which  consists  oj 
only  one  column,  is  shown  in  Table  LI,  p.  142. 

THOSE    IN    ACTIVE    SERVICE   JANUARY    1,    1916. 

Table  XLVIII,  p.  136,  exhibits  the  yearly  future  costs  of  pension 
for  female  teachers  in  active  service  January  1,   1916.     The  yearly 
future  costs  for  male  teachers,  which  consists  of  only  one  column,  L 
shown  in  Table  LI,  p.  142. 

THOSE    WHO    ENTER    SERVICE   AFTER   JANUARY    1,    1916. 

Table  XLIX,  p.  137,  exhibits  the  yearly  future  costs'  of  pensions 
for  female  teachers  who  enter  the  service  after  January  1,  1916.  Th< 
corresponding  table  of  costs  for  male  teachers  is  given  in  Tabl< 
LI,  p.  142. 

From  actual  experience,  female  teachers  appear  to  enter  at  an 
average  age  of  a  little  over  26.  We  have,  therefore,  assumed  26" as  thi 
age  for  future  female  entrants  into  the  staff.  If  we  take  for  grantee 
that  the  same  mortality,  withdrawal  and  retirement  rates  will  be  real- 
ized in  the  future  as  in  the  period  from  January  1,  1906,  to  January 
1,  1916,  366  female  teachers  will  enter  annually  if  the  number  o 
female  teachers  of  January  1,  1916,  be  maintained  in  the  schools 
The  yearly  pension  costs  for  future  female  entrants  as  shown  in  Table 
XLIX,  p.  137,  are  based  on  this  assumption. 

The  average  age  of  entrance  for  male  teachers  is  considerably 
higher  than  for  female  teachers,  being  a  little  over  31  years.  There- 
fore, in  making  our  valuation  for  the  future  yearly  costs  of  pensions 
to  new  male  entrants,  we  have  assumed  31  to  be  the  age  at  which  they 
will  enter  the  service.  Table  LI,  p.  142,  exhibits  the  yearly  costs  to 
be  expected  for  those  entering  the  service  if  the  male  staff  is  kept  at 
its  present  size. 

TABLE   L. 

This  table  contains  the  totals  of  Tables  XLVII,  XLVIII  and 
XLIX,  and  thus  includes  the  total  costs  of  pensions  by  years  for 
female  teachers  in  this  fund.  It  also  gives  for  each  year,  until  the 
system  carries  its  normal  load,  the  ratios  of  pension  payments  to 
salaries,  the  percentages  of  salaries  contributed  to  pensions  by  female 
teachers,  and  the  percentages  of  salaries  that  must  be  contributed  from 


133 

sources  other  than  contributions  by  female  teachers  to  maintain  pen- 
sions for  such  teachers  under  the  present  plan. 

HYPOTHESIS   I  AND  HYPOTHESIS  II,   AND  REASONS  THEREFOR. 

When  teachers  enter  the  Chicago  schools  with  experience,  that 
experience  up  to  ten  years  may  be  counted  towards  service  for  a 
service  pension,  and  it  may  be  counted  up  to  six  years  towards  a 
disability  pension.  Because  of  the  high  age  at  entrance  of  both  male 
and  female  teachers,  it  is  reasonable  to  assume  that  a  number  enter 
with  experience  that  counts  as  years  of  service  towards  a  pension.  On 
account  of  this  fact,  and  because  we  may  reasonably  expect  this  con- 
dition to  continue,  we  have  treated  the  problem  of  future  entrants 
under  two  hypotheses.  Under  what  we  call  Hypothesis  I,  we  assume 
that  teachers  enter  without  experience  that  counts  as  years  of  service 
towards  a  pension.  Under  what  we  call  Hypothesis  II,  we  assume 
that  teachers  entering  the  Chicago  schools  at  a  certain  age,  have  the 
same  experience  as  teachers  of  this  age  whose  entire  active  service  has 
been  in  the  Chicago  schools.  There  is  little  doubt  but  that  the  most 
probable  condition  in  regard  to  experience  conforms  more  nearly  to 
Hypothesis  II  than  to  Hypothesis  I.  However,  Hypothesis  II  gives 
on  the  whole  a  little  too  much  credit  for  experience  outside  Chicago. 
Hence,  the  results  to  be  most  strongly  anticipated  lie  between  those 
given  under  the  two  hypotheses,  but  much  nearer  those  given  by  Hypo- 
thesis II,  than  those  under  Hypothesis  I. 

TABLE   LI. 

This  table  for  male  teachers  corresponds  entirely  to  Table  L, 
p.  140,  for  female  teachers. 

TABLE    LII. 

This  table  contains  the  totals  of  Tables  L,  p.  140,  and  LI,  p.  142, 
and  thus  includes  the  total  expected  costs  of  pensions  for  both  males 
and  females  by  years  under  this  fund.  It  also  gives,  for  each  year 
until  the  system  carries  its  normal  load,  the  ratios  of  pension  payments 
to  salaries,  the  percentages  of  salaries  contributed  to  pensions  by  all 
teachers  and  the  percentages  of  salaries  that  must  be  contributed  from 
sources  other  .than  contributions  by  employees  to  maintain  pensions 
under  the  present  plan. 

REFUNDS. 

The  law  provides  that  in  case  of  dismissal  the  full  amount  of  the 
contributions  shall  be  returned,  and  that  in  case  of  voluntary  resigna- 
tion with  less  than  15  years  of  service,  one-half  the  contributions  shall 
be  returned.  While  the  experience  is  meagre  to  determine  the  effect  of 
this  feature  on  the  condition  of  the  fund,  it  is  a  feature  that  will  prob- 
ably approach  an  almost  stationary  value  before  many  years,  as  the 
refunds  apply  mainly  to  early  years  of  service. 

We  therefore  give  the  following  as  the  experience  of  the  past 
few  years  with  reference  to  refunds: 

October  1,  1909  to  October  1,  1910 $    243  79 

October  1,  1910  to  October  1,  1911 1,007  81 

October  1,  1911  to  October  1,  1912 688  49 

October  1,  1912  to  October  1,  1913 873  00 

October  1,  1913  to  October  1,  1914 '  810  47 


134 

It  is  pretty  clear  from  this  experience  that  the  refunds  are  an 
item  of  relatively  small  significance. 

TABLE   LIII. 

The  balance  sheet  in  Table  LIII,  p.  146,  gives  the  present  value 
of  assets  and  liabilities  for  .present  pensioners  and  for  the  present 
active  service.  For  further  reference  to  it,  see  p.  79. 

In  it  we  have  estimated  the  item  of  refunds  for  the  present  active 
service  at  $800  per  year  for  the  ten  years  for  which  data  was  studied. 
While  this  may  be  a  slight  undervaluation  of  this  liability,  the  error  is 
not  large  enough  to  have  any  practical  significance. 

The  present  value,  with  a  4  per  cent  interest  rate,  of  the  liabilities 
for  pensions  is  $10,795,641.  The  present  value  of  the  contributions 
from  -teachers  is  $2,081,935,  and  of  that  guaranteed  by  law  from  the 
board  of  education  is  $2,081,935.  The  capital  on  hand  is  $1,030,572. 
This  means  that  there  is  a  deficiency  having  a  present  value  of 
$5,601,199. 

PRESENT   AND    FUTURE    COSTS. 

It  may  be  noted  that  the  pension  payments  for  male  teachers  will 
in  1916  amount  to  0.6  per  cent  of  salaries,  and  that  this  will  increase 
until  the  pension  cost  in  about  50  years  will  be  2.5  per  cent  of  salaries. 
Later  there  will  be  a  slight  decrease  to  2.2  per  cent  of  salaries.  The 
average  contribution  of  male  teachers  amounts  to  approximately  0.9 
per  cent  of  average  salary,  and  if  such  contribution  had  been  made 
by  each  teacher  since  he  entered  the  service,  assuming  31  as  the  aver- 
age age  at  entrance,  this  would  almost  support  the  system  for  male 
teachers.  But,  in  spite  of  the  fact  that  the  board  of  education  con- 
tributes an  amount  equal  to  that  contributed  by  teachers,  there  is  an 
accrued  liability  on  male  teachers,  as  shown  in  the  balance  sheet  (Table 
LIII,  p.  146).  This  is  almost  entirely  due  to  the  fact  that  teachers 
began  to  contribute  only  at  the  time  of  the  inauguration  of  the  pension 
system.  Adequate  contributions  for  future  entrants  at  young  ages 
are  inadequate  for  older  persons,  such  as  were  in  the  service  of  the 
schools  at  the  time  when  this  pension  system  was  put  into  operation. 

It  may  be  noted  that  the  pension  payments  for  female  teachers 
will,  in  1916,  amount  to  2.2  per  cent  of  average  salaries,  and  that  this 
will  increase  until  the  pension  cost  in  32  years  from  now  will  be 
about  8.5  per  cent  of  salaries. 

The  average  contributions  of  female  teachers  vary  from  1.5  per 
cent  to  1.6  per  cent  of  average  salaries.  To  support  the  pension  system 
for  such  teachers,  assuming  the  average  age  of  entrance  as  26,  would 
require  a  deduction  of  2.95  per  cent  of  salaries. 

OBSERVATIONS    REGARDING   THE   DEFICIENCY. 

The  contributions  from  teachers  and  equal  contributions  from  the 
board  of  education  taken  together  are  adequate  to  provide  pensions  for 
future  entrants,  and  leave  a  surplus  under  Hypothesis  II  of  approxi- 
mately $35,000  per  year. 

The  present  value  of  the  deficiency  of  $5,601,199  shown  in  the 
balance  sheet  (p.  146  is  due  to  accrued  liabilities  that  were  assumed 
when  the  pension  system  was  started,  and  to  the  fact  that  the  system 


135 


was  in  operation  for  a  number  of  years  before  the  Board  of  Education 
began  to  contribute  on  the  present  basis. 

However,  the  sum  of  $35,000  per  year  is  not  sufficient  to  pay  the 
interest  on  this  deficiency  at  4  per  cent  per  annum,  and  .consequently 
the  deficiency  will  increase  under  the  present  plan  of  contributing  to 
the  fund. 

TABLE  XLVL—  (Male  Teachers). 

THE  NUMBER  AND   PENSIONS   OF   PENSIONERS   AS   OF  JANUARY   1,   1916, 
CLASSIFIED    WITH    REGARD    TO    AGE. 


Age. 

Number. 

Total 
pensions. 

Age. 

Number. 

Total 
pensions. 

Agre. 

Number. 

Total 
pensions. 

5° 

\ 

$     400 

65 

78... 

1 

$400 

53 

o 

66 

79  

l 

400 

54  
55 

1 

400 

67  
68 

1 
1 

$400 
137 

80  
81  

1 
2 

370 
770 

56 

69 

2 

800 

82  

57 

1 

400 

70 

2 

800 

83  

58 

71 

84  

59  
60 

1 

400 

72  
73 

1 
1 

400 
400 

85  
86... 

2 

740 

61 

74  

87  

6'2 

75 

63 

1 

400 

76 

Totals 

23 

$8.  757 

64 

3 

1  140 

77 

TABLE  XLVIL—  (Female  Teachers). 
PENSIONS  ACCRUING  TO   PERSONS   ON  PENSION  ROLL  JANUARY   1,   1916. 


Year. 

Service 
pen- 
sioners. 

Disability 
pen- 
sioners. 

Total 
pen- 
sions. 

Year. 

Service 
pen- 
sioners. 

Disability 
pen- 
sioners. 

Total 
pensions. 

1916... 
1917 

$170,  132 
164  972 

$14,750 
14  267 

$184,882 
179,239 

1946  
1947 

$20,024 
17  148 

$2.  151 
891 

$22,  175 
19  039 

1918  
1919  

159,694 
154,345 

13,  787 
13,309 

173,481 
167,654 

1948... 
1949..  

14,634 
12,258 

,651 
,434 

16,  285 
13,692 

1920 

148,971 

12,837 

161.808 

1950  . 

10,  202 

,239 

11,441 

1921  
1922 

143,548 

138,078 

12,361 
11,884 

155.909 
149,962 

1951  
1952 

8,394 
6,820 

,061 
902 

9.455 

7,722 

1923  
1924  
1925  

132,565 
127,023 
121.958 

11,410 
10,943 
10,485 

143,975 
137,966 
132,443 

1953  
1954  
1955  

5,472 
4,330 
3,376 

761 
639 
529 

6,233 
4,969 
3,905 

1926     .  . 

116,383 

10,023 

126,406 

1956  .... 

2,610 

432 

3,042 

1927 

110  305 

9,560 

119,865 

1957 

1  991 

350 

2,341 

1928 

104,732 

9,103 

113,835 

1958... 

1,513 

280 

1,793 

1929  

99,186 

8,650 

107,836 

1959  

1.137 

222 

1.359 

1930  

93,649 

8,199 

101,848 

I960  

810 

175 

985 

1931 

88,158 

7.750 

95,908 

1961 

564 

137 

701 

1932  

82,803 

7,307 

90,110 

1962 

384 

106 

490 

1933 

77,428 

6.873 

84,301 

1963 

256 

80 

336 

1934 

71  950 

6  443 

78  393 

1964 

166 

59 

225 

1935     .  . 

66,736 

6,021 

72,  757 

1965     ' 

104 

42 

146 

1936 

61  712 

5  601 

67  313 

1966 

62 

29 

91 

1937  

56,718 

5,089 

61,807 

1967 

38 

19 

57 

1938  

51,866 

4,795 

56,661 

1968  

22 

12 

34 

1939  
1940 

47,  174 
42,658 

4,414 
4,045 

51,588 
46  703 

1969  
1970 

12 
4 

7 
3 

19 

7 

1941  
1942 

38.335 
34,222 

3,689 
3,347 

42,024 
37  569 

1971  
1972 

1 

1 

2 

1943 

30  340 

3  0°1 

33  361 

1944 

26,700 

2,  713 

29  413 

Totals 

$2  897  978 

$259,  313 

$3,157  291 

1945  

23.305 

2,425 

25,730 

136 


TABLE  XLVIII. —  (Female  Teachers). 
PENSIONS   ACCRUING  TO   THOSE   IN  ACTIVE   SERVICE   JANUARY   1,    1916. 


Year. 

Service 
pensioners. 

Disability 
pensioners. 

Total 
pensions. 

Contribu- 
tions. 

Future  salaries 
to  present 
active  service. 

1916  
1917 

$  10,204 
31,163 

$  1,103 
3,313 

$  11,307 
34  476 

$133,  179 
132  444 

$8,705,813 
8  489  283 

1918  
1919  
1920              

53,077 
76,  101 
100,316 

5,530 
7,726 
9,912 

58,607 
83,827 
110,228 

131,533 
130,281 

128  868 

8,281,761 
8,063,991 
7  839  881 

1921 

125,375 

12,010 

137,385 

127  145 

7  6^4  936 

1922  
1923              

151,580 
179,094 

14,  103 
16,045 

165,683 
195,  139 

124,838 
122  339 

7,401,607 
7  176  415 

1924 

207,080 

17,940 

225  020 

119  692 

6  954  864 

1925  
1926  
1927  
1928                  

235,997 
265,783 
295,583 
325,  764 

19,  776 
21,339 
22,996 
24,  545 

255,773 
287,  122 
318,579 
350,  309 

116,522 
113,281 
109,831 
106  147 

6,719,310 
6,495,127 
6,266,389 
6  099  581 

1929 

356,  089 

85,905 

381  994 

102  351 

5  795  136 

1930            

386,  130 

27,209 

413,339 

98,371 

5  558  104 

1931 

415,  908 

28,233 

444  141 

91  178 

5  313  698 

1932            

444,908 

29,190 

474,098 

89,  970 

5  074  566 

1933 

473.  156 

29,994 

503,  150 

85  564 

4  833  179 

1934       

499,814 

30,645 

530,  459 

81.183 

4,589,818 

1935            

525,834 

31,135 

556,  969 

76,662 

4  349  808 

1936  

550,  001 

31,565 

581,566 

72,095 

4,  109,  105 

1937            

572,272 

31,652 

603,924 

67,  598 

3  871,104 

1938 

592,412 

31,658 

624,070 

63  113 

3  626  101 

1939     

609,962 

31,439 

641,401 

58,698 

3,401,800 

1940                

624,751 

31,179 

655,  930 

54,496 

3  176  913 

1941 

637,  233 

30,  718 

667  951 

50  318 

2  95->  860 

1942            

645,271 

30.124 

675,  395 

46,  268 

2  739,326 

1943 

652,  552 

29.  423 

681  975 

42  499 

2  595  090 

1944     

655,822 

28,575 

684,397 

38,768 

2,323,578 

1945 

655,869 

27,678 

683,  547 

35,244 

2  131  620 

1946  
1947            

652,  186 
645,  763 

26,706 

25,780 

678,892 
671,543 

31,890 

28,744 

1,941,603 
765,581 

1948  

635,951 

24,614 

660,565 

25,773 

,  595,  146 

1949  

623,965 

23,512 

647,  477 

23,004 

433,293 

1950                .     ... 

607,932 

22,340 

630,  272 

20  400 

1  284,268 

1951  

591,413 

21,154 

612.567 

18,117 

1  141,891 

1952         

571,663 

19,919 

591,582 

15,833 

012,  498 

1953 

549,  739 

18,663 

568,  402 

13  815 

891,559 

1954         

526,342 

17,406 

543,  748 

11,977 

782,798 

1955 

501,478 

16,  147 

517,625 

10,334 

681,284 

1956 

475,489 

14,893 

490  382 

8  855 

589,  552 

1957         

448,777 

13.675 

462,452 

7,590 

509,  010 

1958 

421,659 

12,513 

434,  172 

6,313 

433,007 

1959  
I960                   

394,350 
367,  108 

11,369 
10,287 

405,719 
377,  395 

5,245 
4,302 

366.567 
307,  121 

1961 

340,  200 

9  272 

349,  472 

3  471 

254,  547 

1962        

313,752 

8,326 

322,078 

2,754 

207,968 

1963 

287,942 

7,424 

295,366 

2,  131 

166,  046 

1964  

262,  821 

6,601 

269,  422 

1,606 

139,744 

1965 

238,471 

5,840 

244,311 

1,178 

100,508 

1966  

215,001 

5,136 

220,  137 

834 

74,  424 

1967  
1968                   

192,503 
171  ,  055 

4,492 
3,904 

196,995 
174,959 

669 
375 

54,378 
37,  598 

1969 

150,  873 

3,372 

154,245 

268 

24,591 

1970  
1971 

131,978 
114,476 

2,898 
2,466 

134,876 
116,942 

143 
73 

15,  169 

8,121 

1972  

98,390 

2,082 

100,  472 

35 

3,  828 

1973                

83,783 

1,744 

85,527 

15 

1,484 

1974 

70,  669 

1,451 

72,  120 

5 

432 

1975  

58.974 

1,187 

60,161 

2 

84 

1976 

48,684 

966 

49  650 

g 

1977 

39  722 

774 

40  496 

1978 

32,005 

613 

32,618 

1979 

25,431 

474 

25  905 

1980 

19  908 

366 

20  274 

1981 

15,338 

277 

15  615 

198° 

11  356 

207 

11  563 

1983 

8  595 

150 

8  745 

1984 

6,254 

107 

6  361 

1985 

4  409 

72 

4  481 

1986 

3  056 

51 

3  107 

1987 

2,061 

33 

2  094 

1988 

1  306 

20 

1  326 

1989 

846 

12 

858 

1990 

511 

7 

518 

1991 

298 

4 

302 

137 


TABLE    XLVIII— (Female    Teachers)— Concluded. 


Year. 

Service 
pensioners. 

Disability 
pensioners. 

Total 
pensions. 

Contribu- 
tions. 

Future  salaries 
to  present 
active  service. 

$166 

$166 

1909 

85 

85 

I'.f.H  

39 

39 

I'.U") 

14 

• 

14 

iw.  

5 

5 

I'.u; 

1 

1 



Totals  

$22,319.894 

$1,031,966 

$23,351,860 

$2,999,157 

$178.235.867 

Present  values. 

$7.723,768 

$425,  951 

$8,  149  719 

$1,860,444 

Interest    4    per 
cent. 

TABLE  XLIX.— (Female  Teachers). 
PENSIONS    ACCRUING    TO    FUTURE    ENTRANTS. 


u 

rt 
<u 

K* 

Service  Hy- 
pothesis I. 

Disability  Hy- 
pothesis I. 

Total  Hypoth- 
esis I. 

Contributions 
Hypothesis 

Service  Hy- 
pothesis II. 

Disability  Hy- 
pothesis II. 

Total  Hypoth- 
esis II. 

Contributions 
Hypothesis 

Salaries  to 
future  en- 
trants. 

1916... 

$   888 

$  1  198 

$  163  344 

1917 

2  558 

3  870 

485  661 

1918  

4,124 

6  767 

801  965 

1919 



5  590 

9  875 

1  109  793 

1920  

6,966 

13  149 

1  411  027 

1921 

9  556 

16  542 

1  705  013 

1922  

12,008 

20  034 

1  991  898 

1923  . 

14  341 

23  662 

2  274  183 

1921 

16  569 

....  „  .  . 

27  405 

2  550  487 

1925.. 

18  704 

$    4 

$     4 

31  301 

2  820  527 

1926  

21,779 

22 

22 

35  299 

3  068  036 

1927... 

24  740 

68 

68 

39  395 

3  344  490 

1928  

27,590 

155 

155 

43  588 

3  599  868 

1929  

30  366 

294 

294 

47  868 

3  849  819 

1930  

33,  051 

495 

495 

52  254 

4  095  044 

1931  

38  274 

769 

769 

56  712 

4  336  194 

1932 

$   42 

$    42 

43  371 

$   143 

1  126 

1  269 

61  146 

4  572  283 

1933  
1934 

172 
396 

172 

396 

48,290 
53  090 

617 
1  487 

1,571 
2  107 

2,188 
3  594 

65,534 
69  846 

4,804,422 
5  031  611 

1935  
1936 

717 
1  135 

717 
1  135 

57,753 
62  280 

2,817 
4  680 

2,735 
3  455 

5,552 
8  135 

74,074 
78  216 

5,253,889 
5  471  950 

1937  

1,651 

1,651 

66,672 

7  135 

4  265 

11  400 

82  264 

5  685  697 

1938 

2.262 

2  262 

70  929 

10  245 

5  160 

15  405 

86  216 

5  894  278 

1939  

2,964 

2,964 

75,049 

14  073 

6  134 

20  207 

90  069 

6  098  650 

1940 

3,750 

3  750 

79  032 

18  684 

7  173 

25  857 

93  820 

6  298  326 

1911  

4,607 

4,607 

82,875 

24  142 

8  264 

32  406 

97  455 

6  493  065 

1942  
1943  
1944  
19ir,  
1946  
1947  
1948  
11)4'.)  
1950  
i'.»:.i  
1952  
1953  
1954  
1955  
1956  
1957  

I'.r.s  

1959  
1960  
1961  
1962  
1963  

$    479 
1,953 
4.503 
8,208 
13,  134 
19,347 
26,890 
35.801 
46.  101 
57,  838 
71,008 
85,588 
101,538 
118,791 
137,273 
159,081 
179,  753 
201.368 
223,820 
246.984 
270,  714 
294,  773 

5,521 

6,484 
7,493 
8,550 
9,662 
10,834 
12,063 
13,341 
14,656 
15,992 
17,333 
18,658 
19,  952 
21,204 
22,410 
23,561 
24.653 
25.687 
26,662 
27,578 
28,436 
29.236 

6,000 
8,437 
11,996 
16,  758 
22,796 
30,  181 
38.953 
49,  142 
60.  757 
73.830 
88.830 
104.246 
121.490 
139,995 
159,683 
182,642 
204,406 
227,055 
250,482 
274,562 
299,150 
324,009 

86,576 
90.129 
93.529 
96,770 
99.846 
102,753 
105,488 
108,048 
110,432 
112,639 
114,669 
116,524 
118,207 
119,721 
121,069 
122,254 
123,281 
124,  152 
124.873 
125,448 
125.890 
126,218 

30,516 
37,886 
46,328 
55,912 
66,696 
78,  724 
92.033 
106,792 
122,749 
140,045 
158,660 
178,547 
199,636 
221,850 
245,  101 
269.284 
294,292 
320,012 
346.314 
373,045 
399,961 
426,733 

9,399 
10,575 
11.794 
13,062 
14.385 
15.760 
17,  179 
18,630 
20,097 
.  21,563 
23,009 
24,419 
25,782 
27,033 
28,344 
29.531 
30.654 
31.713 
32.709 
33.642 
34,512 
35.320 

39,915 
48.461 
58,122 
68,974 
81,081 
94,484 
109.212 
125,422 
142,846 
161,608 
181,669 
202.966 
225,418 
248,943 
273,  445 
298,815 
324,946 
351.725 
379.023 
406.687 
434,473 
462,053 

100.971 
104,365 
107,633 
110,758 
113.736 
116.561 
119,226 
121,728 
124,062 
126.  226 
128,223 
130,052 
131,713 
133.209 
134.543 
135,718 
136,738 
137.605 
138,322 
138,895 
139,335 
139,662 

6,683.045 
6,867,831 
7.047,485 
7.220,351 
7,386,673 
7,545,599 
7,696,753 
7.839,703 
7,973,990 
8,099,996 
8,217,555 
8.326,291 
8,476,443 
8,518,027 
8,601,354 
8,676,743 
8,743,817 
8,802,776 
8,853,390 
8,895.754 
8,929.916 
8.956,968 

138 


TABLE  XLIX.— (Female  Teachers)-Concluded, 


£ 

0) 
P* 

Service  Hy- 
pothesis I. 

Disability  Hy- 
pothesis I. 

Total  Hypoth- 
esis I. 

Contributions 
Hypothesis 
I, 

Service  Hy- 
pothesis II. 

Disability  Hy- 
pothesis II. 

Total  Hypoth- 
esis II. 

Contributions 
Hypothesis 
II. 

Salaries  to 
future  en- 
trants. 

1964  

$318,836 
342,556 
365,594 
387.656 
408,515 
427,995 
445,922 
462,  193 
476,750 
489,594 
500,789 
510,420 
518,587 
525,  404 
530.998 
535,503 
539,057 
541,800 
543.866 
545,381 
546,460 
547,205 
547,702 
548,021 
548,218 
.  548,334 
548,399 
548,434 
548,451 

$29,980 
30,667 
31,299 
31,876 
32,399 
32,870 
33,290 
33,661 
33,985 
34,265 
34,  503 
34,703 
34,869 
35,004 
35,112 
35,  197 
35,262 
35,311 
35,347 
35,373 
35,391 
35,403 
35,411 
35,416 
35,419 
35,421 
35,  422 
35,422 
35,422 

$348,816 
373,223 
396,893 
419,532 
440,914 
460,865 
479.212 
495,854 
510,735 
523,859 
535,292 
545,  123 
553,  456 
560,408 
566,110 
570,700 
574,319 
577.111 
579,213 
580.754 
581,851 
582.608 
583,113 
583,  437 
583,637 
583,755 
583,821 
583,856 
583,873 

$126,442 
126,663 
126,708 
126,771 
126,804 
126,818 
126,822 

$453,007 
478,438 
502,733 
525.656 
547,018 
566,668 
584,491 
600,433 
614,499 
626,  759 
637,307 
646,251 
653,717 
659,843 
664,776 
668,669 
671  673 

$36,067 
36,  753 
37,380 
37,948 
38,460 
38,916 
39,319 
39,671 
39,975 
40,234 
40.  451 
40,631 
40,778 
40,895 
40,987 
41,058 
41,112 

$489,074 
515,191 
540,113 
563,604 
585,478 
605,584 
623,810 
640,  104 
654,474 
666,993 
677,  758 
686,882 
694,495 
700,738 
705,763 
709,727 
712,785 

$139,896 
140,057 
140.  162 
140,225 
140,258 
140,272 
140.276 
140,277 

$8,978,608 
8,994.890 
9,006,467 
9,014,020 
9,017.977 
9,019.626 
9,019,673 
9,019.679 

1965 

1966  

1967  
1968 

1969  
1970 

1971  
1972  

1973  
1974  

1975 



1976  

1977 

1978 

1979  

1980 

1981 

673.935 
675,594 
676,  776 
677.592 
678,  136 
678,485 
678,  700 
678,827 
678,898 
678,936 
678,955 

41,152 
41,180 
41,200 
41,213 
41,222 
41,227 
41,230 
41,232 
41,233 
41,234 
41,234 

715,087 
716,  774 
717,976 
718,805 
719,358 
719,712 
719,930 
720,059 
720,  131 
720,  170 
720,  189 

1982... 
1983 



1984  
1985 



1986 

1987  

1988  
1989  
1990 



1991  
1992 

Totals. 

$16,653,583 

$1,401,362 

$18,054,945 

$4,261,989 

$21,851,911 

$1,676,961 

$23,528,872 

$5,118.263 

$349,274,723 

139 


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144 


TABLE  LII — (Teachers,  Male  and  Female). 
SHOWING   THE    TOTAL    ANNUAL    CONTRIBUTIONS,    PENSION    PAYMENTS 


Year. 

Grand  totals  of- 
all  pension  pay 
ments  under 
Hypothesis  11. 

Grand  totalsof  all 
contributions 
under  Hypothe- 
sis II. 

Grand  totalof  sal- 
aries. 

Ratios  of  pension 
paymentsto  sal- 
ary payments 
expressed  in 
percentages. 

Average  percent- 
ages of  salaries 
contributed  by 
teachers. 

Average  percent- 
ages of  salaries 
to  be  provided 
by  thecityor  un- 
provided for. 

1916 

$205  424 

$148  252 

$10  467  382 

1917  
1918 

223,835 
243  133 

150.  488 
152  734 

10,604,647 
10  744  °58 

2.1 

2q 

.4 

0.7 

1919  
1920  

263,407 
285  062 

154^908 
157  049 

10,861,175 
10  966  094 

2.4 
2  6 

.4 

1.0 

1921  
1922  
1923   .  . 

307,  540 
331,078 
355  852 

158,978 
160,432 
161  801 

11,069,690 
11.155,319 
11  235  726 

2.8 
3.0 

30 

.4 
.4 

1.4 
1.6 

1924  
1925  

380,912 
407  521 

163,067 
164  080 

11,310,923 
11  369  118 

3.4 
3  6 

.4 

2.0 

1926 

434  241 

165  095 

11  423  557 

q  o 

1927  

1928 

460,616 
487  879 

165,836 
166  485 

11,465,560 
1  1  496  268 

4.0 
4  2 

.4 

2.6 

1929  

1930 

515,  106 
542  067 

167,110 
167  635 

11,524,177 
11  542  436 

4.5 

4  7 

.5 
5 

3.0 

1931  

568,  537 

167  994 

11  548  334 

4  9 

5 

34 

1932  
1933 

594.509 

620  002 

168,312 
168  346 

11,558,383 
11  549  432 

5.1 
5  4 

.5 

3.6 

0   Q 

1934  
1935..  .. 

644,  165 
668  421 

168,288 
167  993 

11.535,075 
11  517  045 

5.6 
5  8 

.5 

K 

4.1 
A  q 

1936... 

691,699 

167  518 

11  489  183 

6  0 

5 

4  5 

1937  
1938 

713,438 
733  867 

167,031 
166  459 

11.459,818 
11  419  740 

6.2 
6  4 

.5 

4.7 
4  Q 

1939  

1940 

751,942 

768  074 

165,888 
165  332 

11,392,226 
11  361  155 

6.6 

6  8 

.5 

5.1 
c  q 

1941  
1942  
1943  

782,597 
793,679 
804,838 

164,771 
164,181 
163,759 

11,327,839 
11.301,530 
11,266  650 

6.9 

7.0 
7  1 

.5 
.5 
5 

5.4 
5.5 
5  6 

1944  
1945     

813,231 
819  745 

163,281 
162  830 

11,243.761 
11  217  915 

7.2 
7  3 

.5 

5.7 
5  8 

1946  

823,702 

162  411 

11,189  494 

7  4 

5 

5  9 

1947  
1948 

826,  762 
827  636 

162,071 
161  714 

11,170,781 
11  146  196 

7.4 
7  4 

.5 

5.9 
5  9 

1949  

828,222 

161  339 

11  123  431 

5 

5  9 

1950 

825,  987 

161  126 

11  109  590 

7  4 

5 

5  9 

1951  

825,071 

160  961 

11,087  936 

7  4 

5 

5  9 

1952  
1953 

822,378 
818  885 

160,  648 
160  347 

11.072,305 
1  1  058  576 

7.4 
7  4 

.5 

5.9 
5  9 

1954  
1  955 

815,322 
811,617 

160,175 
159  979 

11,044,700 
11  030  764 

7.4 
7  4 

.5 

5 

5.9 
5  9 

1956 

807  874 

159  810 

11  021  747 

7  3 

5 

5  8 

1957  

804,354 

159  700 

ll!  012  453 

7  3 

5 

5  8 

1958 

801  508 

159  42° 

10  999  494 

7  3 

4 

5  9 

1959  

799,  085 

159  124 

10,989  396 

7  3 

4 

5  9 

1960 

797,830 

158  826 

10  973  454 

7  3 

4 

5  9 

1961  

797,414 

158,487 

10,954,684 

7  3 

4 

5  9 

1962  

797,  832 

158  133 

10,933  956 

7  3 

4 

5  9 

1963 

799,  135 

157  727 

10  906  551 

7  3 

4 

5  9 

1964  

800,  722 

157,368 

10,880  389 

7  4 

4 

6  0 

1985  

802,081 

156  985 

10.857  208 

7  4 

4 

6  0 

1966 

803,195 

156  669 

10  833  442 

7  4 

4 

6  0 

1967  

803,  762 

156,  505 

10,813,389 

7  4 

4 

6  0 

1968    .   .  . 

803,493 

156  202 

10,795  604 

7  4 

4 

6  0 

1969 

802,755 

156  074 

10  779  788 

7  4 

4 

6  0 

1970  
1971 

801,365 
799,  404 

155,918 
155  829 

10.765,961 
10,756  295 

7.4 
7  4 

.4 

4 

6.0 
6  0 

1972  

796,  856 

155,788 

10,751,675 

7.4 

4 

6.0 

1973  
1974 

793,907 
790,771 

155,768 
155,758 

10,749,331 
10  748,279 

7.4 
7  4 

.4 
4 

6.0 
6  0 

1975  

786,  376 

155,755 

10.747,931 

7.3 

4 

5.9 

1976  
1977 

784,  103 
780,  865 

155,  755 
155,755 

10,747,850 
10,747  850 

7.3 

7  3 

.4 
4 

5.9 
5  9 

1978  
1979  

777,  729 
774,  744 

155,  755 
155,  755 

10,  747,  850 
10,  747,  850 

7.2 

7  2 

.4 
4 

5.8 
5.8 

1980 

771,988 

155,755 

10,747  850 

7  2 

4 

5  8 

1981  
1982  
1983 

769,490 
767,024 
765,338 

155,  755 
155,755 
155,755 

10,747.850 
10.747,850 
10,747,850 

7.2 

7.1 
7  1 

.4 
.4 

4 

5.8 
5.7 

5.7 

1984  

763.  738 

155,755 

10,  747,  850 

7.1 

.4 

5.7 

145 


TABLE    LII — Concluded. 


Year. 

Grand  totals  of 
all  pension  pay- 
men  t  s  under 
Hypothesis  II. 

Grandtotalsofall 
contrib  u  t  ions 
under  Hypothe- 
sis II. 

Grand  totals  of 
salaries. 

Ratios  of  pension 
payments  to  sal- 
ary payments 
ex  pressed  in 
per  centages. 

Average  percent- 
ages of  salaries 
contributed  by 
teachers. 

Average  percent- 
ages of  salaries 
to  be  provided 
by  the  city  or  un- 
provided for. 

I<K-,  

•n 

$762.385 
7t>l  Xil 

$155.  755 
155,756 

$10,747,850 
10,747  850 

7. 

7 

.4 
4 

5.7 
5  7 

198?  
BBS 

760,  550 
759,  908 

155,755 
155,755 

10,  747,  850 
10,  747,  850 

7. 

7 

.4 
4 

5.7 

5  7 

1989  
1990  
1991  

759,  51  1 
759,210 
759,013 

155,  755 
155.755 
155,755 

10,747,850 
10.747,850 
10,747.850 

7. 
7. 

7 

.4 
.4 

4 

5.7 
5.7 
5  7 

1992 

758,  877 

155,755 

10,  747,  850 

7 

4 

5  7 

1993  

758,  796 

155.755 

10,747,850 

7 

4 

5  7 

1994             

758,750 

155,755 

10,  747.  850 

7 

4 

5  7 

19D;>  

758,  725 

155.755 

10,  747,  850 

7 

4 

5  7 

1996 

758,716 

155.  755 

10,747  850 

7 

4 

5  7 

1997 

758  712 

155  755 

10  747  850 

7  0 

4 

5  6 

Totals  

$57.257.241 

$13.079,042 

$903,169.916 

146 


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14? 


THE  MUNICIPAL  EMPLOYEES'  FUND  OF  CHICAGO 

THE   BENEFITS. 

Service  Pensions :  Pensions  of  $600  per  year  are  granted  to 
those  who  choose  to  retire  from  service  after  20  years  of  service,  but 
if  the  employee  at  that  time  is  under  55  years  of  age,  the  payment  of 
a  pension  does  not  begin  until  he  or  she  attains  the  age  of  55  years. 
Civil  War  veterans  who  have  attained  the  age  of  65  years  are  required 
to  serve  only  10  years. 

Disability  Pensions :  Pensions  are  granted  to  those  who  retire 
from  service  after  5  years  of  service  on  account  of  disability. 

THE    SOURCES    OF   REVENUE. 

Each  employee  contributes  $2  per  month  deducted  from  salary. 
If  an  employee  has  not  contributed  a  total  of  $480  at  the  time  of  retire- 
ment on  pension,  he  must  contribute  the  balance  at  that  time,  or  have 
deductions  made  from  his  pension. 

The  city  appropriates  for  two  years,  under  the  amendment  of 
July  1,  1915,  an  amount  equal  to  the  sum  deducted  from  the  salaries 
of  employees  during  the  previous  calendar  year. 

THE   PLAN   ADOPTED   IN    INVESTIGATING   THIS    FUND. 

Prior  to  July  1,  1911,  the  date  when  the  act  regulating  this  fund 
took  effect,  there  were  no  means  of  obtaining  any  data  regarding  the 
rates  of  withdrawal  from  service,  of  value  in  an  investigation  of 
future  costs  under  this  fund ;  consequently  we  began  the  accumula- 
tion of  data  as  of  July  1,  1911.  At  the  same  time,  it  was  deemed 
advisable  not  to  extend  the  period  beyond  January  1,  1916,  and  there- 
tore  the  rates  were  derived  in  this  case  from  an  experience  of  four 
and  one-half  years  as  against  ten  years  in  the  case  of  the  three  pre- 
ceding funds.  However,  because  of  the  number  of  employees  involved, 
we  believe  that  the  rates  thus  found  will  reflect  future  experience  with 
considerable  accuracy. 

Since  no  pensions  had  been  paid  from  this  fund  on  January  1, 
1916,  no  experience  was  available  from  which  to  obtain  rates  of  retire- 
ment on  pension  as  of  that  date.  Payments  were  begun  on  July  1 ; 
but  even  if  our  investigation  had  been  delayed  so  as  to  include  a  few 
months  of  pension  experience,  the  rates  for  retirement  on  pension  for 
these  few  months  might  in  no  wise  be  indicative  of  those  that  would 
be  experienced  in  the  future.  Consequently  we  were  driven  to  make 
assumptions  with  regard  to  the  ages  when  employees  who  had  fulfilled 
the  requirements  regarding  years  of  service  would  accept  pension. 
We  assumed  that  all  who  had  20  years  of  service  to  their  credit  would 
accept  pension :  first,  at  age  55  ;  second,  at  age  60 ;  third,  at  age  65 ;  and 
fourth,  at  age  70.  Under  each  of  these  assumptions  we  made  a  cal- 
culation to  determine  the  cost  of  pensions  under  the  withdrawal  experi- 


148 


ence  derived  from  an  investigation  of  the  fund  from  July  1,  1911,  to 
January  1,  1916. 

As  the  first  and  last  of  these  assumptions  are  of  an  extreme 
character,  it  may  be  assumed  with  safety  that  the  future  experience  of 
this  fund  will  exhibit  costs  somewhere  between  those  found  in  these 
two  cases. 

ACTUAL  EXPERIENCE  TABLE  AND  TABLE  OF  RATES. 

The  actual  experience  table  is  given  in  outline  in  Table  LIV, 
below;  the  table  giving  the  rates  of  withdrawal  from  service  and 
rates  of  death  in  service  is  Table  LV,  below. 

For  rates  of  mortality  among  pensioners  we  adopted  the  Ameri- 
can Experience  Table  of  Mortality. 

Because  of  the  absence  of  data  we  were  compelled  to  disregard 
almost  entirely  the  disability  feature.  We  assumed  that  all  over  70 
years  of  age  with  insufficient  service  to  retire  on  service  pensions  will 
retire  on  disability  pensions.  This  probably  gives  costs  lower  than 
will  actually  be  experienced  among  disability  pensioners,  but  the  item 
is  relatively  unimportant. 

TABLE  LIV— (Municipal  Employees). 

ACTUAL,  EXPERIENCE  WITH  THOSE  WHO  HAVE  BEEN  IN  ACTIVE  SERV- 
ICE WITHIN  THE  PERIOD  OF  JULY  1,  1911  AND  JANUARY  1,  1916. 


(2) 

(3) 

(4) 

(5) 

(6) 

(7) 

(8)      - 

(9) 

(10) 

Age. 

1?S2"3 

sss-j. 

os-:ss 

03  o  rj  hn^ 

3°§1B- 

|-S+JH3  «  0 

«H  o  4-1  fl  r; 
ofl4S±Jrt 

CO        —  fe  >i 

If: 

i^ll 

»|3-5 

>-t  >  a  <u 

>>  '-i.d  A 
p  o  £J3 

3.2- 

re 
£ 

•r;,d 

£*'** 

cu+ 

^«D 

a. 

Jan.  1 
n  active 
h  ages  as 
1,  1916. 

o  ^  rt  rt  _; 

•Es:ad 

I--3S3 

cw 

gissl 

•p:—  32w 
3-r^S 

GQ 

Entrants 
active 
ages 
trance 

il**?i 

c3  2       cu.3  C3 
>H  ™  <u  )-i  .tJ  rt 

assail 

H 

IgJll 

Deaths  v 
at  deat 

T3  O  .ti  CO  £J 

£  re  are's 

CO  00 

*Si 

oS^ 

H 

aOO.~  rj 

S    £° 

'£  «0  ^  ^ 
.2§^<^ 

Hsao 

H 

20 

1 

21 

1 

9 

5 

4 

4 

8 

9 

21 

2 

3 

3 

28 

23  

4 

1C 

3 
3 

61 
67 

8 

8 
13 

...... 

8 
14 

65 

82 

Etc. 

Details 

for 

each 

age. 

Totals. 

3,526 

793 

2,078 

310 

739 

317 

47 

1,  103 

5.604 

TABLE   LV — (Municipal  Employees). 


Age. 

Rates  of  with- 
drawal by  resig- 
nation or  dismissal. 

Rates  of  mortality 
in  the   active 
service. 

Age. 

Rates  of  with- 
drawal by  resig- 
nation or  dismissal. 

Rates  of  mortality 
in  the   active 
service. 

20  

0.0366 

0.0015 

36... 

0.0420 

0.0082 

21.  .  . 

0.0379 

0.0017 

37... 

0.0404 

0.0088 

22.  .. 

0.0395 

0.0020 

38... 

0.0388 

0.0093 

23  !  !! 

0.0420 

0.0023 

39... 

0.0372 

0.0098 

24! 

0.0466 

0.0026 

40... 

0.0356 

0.0103 

25. 

0.0553 

0.0029 

41... 

0.0340 

0.0108 

26. 

0.0583 

0.0033 

42... 

0.0319 

0.0113 

27! 

0.0586 

0.0037 

43.  .  . 

0.0296 

0.0118 

28. 

0  .  0573 

0.0042 

44... 

0.0272 

0.0124 

29! 
30. 
31  . 

0.0546 
0.0521 
0.0501 

0.0047 
0.0052 
0.0057 

45... 
46... 
47... 

0.0250 
0.0227 
0.0204 

0.0130 
0.0136 
0.0142 

32. 

0.0483 

0.0062 

48... 

0.0180 

0.0149 

33! 

0.0468 

0.0067 

49... 

0.0163 

0.0157 

34.  .. 

0.0452 

0.0072 

50... 

0.0154 

0.0165 

0.0436 

0.0077 

51... 

0.0149 

0.0173 

149 

TABLE  LV— Concluded. 


Agre. 

Rates  of  with- 
drawal by  resig- 
nation or  dismissal. 

Rates  of  mortality 
in  the   active 
service. 

Agre. 

Rates  of  with- 
drawal by  resigr- 
nationor  dismissal. 

Rates  of  mortality 
in  the  active 
service. 

52.... 
53.... 
54.... 
55.... 
56.... 
57.... 
58.... 
59.... 

0.0145 
0.0143 
0.0142 
0.0141 
0.0140 
0.0140 
0.0140 
0.0140 

0.0183 
0.0194 
0.0205 
0.0216 
0.0228 
0.0242 
0.0256 
0  0269 

63... 
64... 
65... 
66... 
67... 
68... 
69... 
70... 

0.0140 
0.0140 
0.0137 
0.0129 
0.0115 
0.0092 
0.0045 

0.0340 
0.0363 
0.0392 
0.0424 
0.0457 
0.0490 
0.052* 
0.0558 

60  

0  0140 

0  0286 

71 

0  0592 

61.... 

0.0140 

0.0303 

72.  .. 

0.0628 

62.... 

0.0140 

0.0321 

The  probability  of  losing:  a  position  on  account  of  abolition  of  position  based  on  the  data 
from  July  l,  1911,  to  June  1. 1916,  is  0:0021. 

TABLE  LVI— (Municipal  Employees). 
ACTIVE   SERVICE  TABLE  AND  SALARY  SCALE. 


(1) 

(2) 

(3) 

(4) 

(5) 

(6) 

(7) 

Ag-e. 

Active 
service. 

With- 
drawals. 

Deaths. 

Losing- 
position  by 
abolition  of 
position. 

Total  de- 
crements. 
Cols.  (3)+ 

Salary  scale 
from  active 
service  Jan.  1, 
1916. 

20 

100  000 

3  660 

150 

206 

4  016 

21   

95  984 

3  638 

163 

198 

3  999 

$    635 

22  

91  985 

3  633 

184 

189 

4,006 

815 

23  

87  979 

3  695 

202 

181 

4  078 

930 

24  

&3  901 

3  910 

218 

173 

4,301 

1,020 

25  

79  600 

4  402 

231 

164 

4  797 

1  070 

26  

74  803 

4  361 

247 

154 

4,762 

1,110 

27.. 

70  041 

4  104 

259 

144 

4  507 

1,145 

28  

65  534 

3  755 

275 

135 

4,165 

1,170 

29. 

61  369 

3  351 

288 

126 

3  765 

1  200 

30  

57  604 

3  001 

300 

119 

3  420 

1,230 

31... 

54  184 

2  715 

309 

112 

3  136 

1  255 

32  

51  048 

2  466 

316 

105 

2  887 

1,285 

33.. 

48  161 

2  254 

323 

99 

2  676 

1  310 

34  

45  485 

2  056 

327 

94 

2  477 

1  330 

35 

43  008 

875 

331 

89 

2  295 

1  345 

36  

40  713 

710 

334 

84 

2  128 

1  350 

37 

38  585 

559 

340 

79 

978 

1  355 

38  

36  607 

420 

340 

75 

835 

1  360 

39. 

34  772 

294 

341 

72 

707 

1  362 

40  

33  065 

177 

341 

68 

586 

1  362 

41 

31  479 

070 

340 

65 

475 

1  362 

42  

30  004 

957 

339 

62 

358 

1  362 

43.   . 

28  646 

848 

338 

59 

245 

1  362 

44  

27  401 

745 

340 

56 

141 

1  362 

45 

26  260 

657 

341 

54 

052 

1  361 

46  

25.208 

572 

343 

52 

967 

1,360 

24  241 

495 

344 

50 

889 

1  359 

48  

23  352 

420 

348 

48 

816 

1,359 

49. 

22  536 

367 

354 

46 

767 

1  358 

50  

21  769 

335 

359 

45 

739 

1,357 

I! 

21  030 

313 

364 

43 

720 

1  356 

52  
53 

20.310 
19  602 

294 

280 

372 

380 

42 
40 

708 
700 

1,355 
1  354 

54 

18  902 

268 

387 

39 

694 

1  353 

55.. 

18  208 

257 

393 

38 

688 

1  352 

56  

17,520 

245 

399 

36 

680 

1,351 

57 

16  840 

236 

408 

35 

679 

1  350 

58 

16  161 

226 

414 

33 

673 

1  348 

59 

15  488 

217 

417 

32 

666 

1  347 

60 

14  822 

208 

424 

31 

663 

1  344 

61 

14  159 

198 

429 

29 

656 

1  335 

62 

13  503 

189 

433 

28 

650 

1  330 

63 

12,853 

180 

437 

26 

643 

1  325 

64 

12  210 

171 

443 

25 

639 

1  320 

65... 

11  571 

159 

454 

24 

637 

1  315 

66 

10  934 

141 

464 

23 

628 

1  308 

67  

10.306 

119 

471 

21 

611 

1  300 

68 

9  695 

89 

475 

20 

584 

1  296 

69  
70 

9,111 
8  574 

41 

477 

19 

537 

1,295 

150 


ASSUMPTIONS  WITH   REGARD  TO  AGES  OF  RETIREMENT. 

In  the  interest  of  clearness,  let  us  explain  in  more  detail  what  we 
assume  in  regard  to  ages  of  retirement.  Under  our  most  expensive 
assumption  about  retirement,  we  assume  that  those  who  have  20  years 
of  service  at  age  55  will  retire  at  that  age.  If  they  have  insufficient 
service  to  retire  at  55,  they  must  wait  for  retirement  until  age  60.  Then 
they  are  assumed  to  retire  if  eligible.  If  they  are  ineligible  at  60, 
they  must  wait  to  retire  until  age  65.  If  they  are  ineligible  at  65, 
they  can  not  retire  before  age  70.  After  age  70,  we  assume  that,  if  they 
have  not  the  service  requirements,  they  will  retire  on  disability  pen- 
sions. 

THE   PRESENT   ACTIVE   SERVICE   AND   FUTURE    SERVICE. 

It  seems  to  tend  towards  clear  thinking-in  considering  a  proposed 
pension  system  to  separate  the  future  entrants  to  the  service  from  those 
who  constitute  the  present  active  service.  It  is,  in  fact,  the  mixture  of 
these  two  subgroups  that  leads  to  many  of  the  blunders  in  starting  a 
pension  system. 

There  is  generally  a  large  accrued  liability  chargeable  to  the  active 
service  because  the  members  of  such  active  service  have  not  been  pro- 
viding the  necessary  contributions  during  their  entire  service.'  Ade- 
quate contributions  from  members  of  the  future  service  entering  at 

TABLE  LVII — (Municipal  Employees). 

SHOWING  FOR  FUTURE  ENTRANTS,  WITH  RESPECT  TO  AGES  AT  EN- 
TRANCE INTO  THE  SERVICE,  THE  RATIO  OF  BENEFITS  WHICH  THE 
CONTRIBUTIONS  OF  EMPLOYEES  WILL  PRODUCE,  TO  TOTAL 
BENEFITS. 

WITHDRAWAL  RATES  FROM  EXPERIENCE  FROM  JULY  1,   1911,  TO  JUNE  1,  1916. 


Age  at 
entrance. 

Ratios  of  benefits  purchased  by  contributions  of  employees  to  total  benefits. 

On  the  assumption 
of  retirement  at 
55  years  of  age. 

On  the  assumption 
of  retirement  at 
60  years  of  age. 

On  the  assumption 
of  retirement  at 
65  years  of  age. 

On  the  assumption 
of  retirement  at 
70  years  of  age. 

20 

0.632 
0.584 
0.535 
0.497 
0.454 
0.415 
0.379 
0.346 
0.317 
0.288 
0.262 
0.239 
0.216 
0.191 
0.178 
0.161 

\ 

0.987 
0.923 
0.858 
0.797 
0.741 
0.684 
0.634 
0.583 
0.539 
0.495 
0.457 
0.418 
0.385 
0.353 
0.323 
0.296 
0.271 
0.247 
0.225 
0.206 
0.186 

1.47 
1.41 
1.34 

.26 
.18 
.12 
.04 
0.983 
0.918 
0.857 
0.796 
0.743 
0.690 
0.640 
0.593 
0.549 
0.509 
0.468 
0.432 
0.397 
0.366 
0.336 
0.308 
0.283 
0.258 
0.236 

2.06 
2.01 
.92 
.86 
.78 
.71 
.62 
.56 
.48 
.41 
.35 
.27 
.21 
.13 
.07 
.00 
0.941 
0.880 
0.819 
0.766 
0.716 
0.670 
0.622 
0.574 
0.531 
0.492 
0.454 
0.416 
0.384 
0.351 
0.321 

21  
22.. 

23  
24  
25 

26  

27.. 

28 

29  

30 

31 

32.. 

33 

34  

35.. 

36 

37 

38.. 

39 

40  

41... 

42 

43  

44    

45 

46 

47    . 

48 

49 

50    

151 


TABLE  LVIII — (Municipal  Employees). 

PRESENT  VALUES  OF  FUTURE  CONTRIBUTIONS  AND  BENEFITS  PER 
PARTICIPANT  ON  ASSUMPTION  OF  RETIREMENT  AT  AGE  55,  IF  ELI- 
GIBLE AT  THAT  AGE. 


Age. 

Present  value  of  future  con- 
tributions. 

Benefits  to  all  participants. 

Additional  benefits   to 
those  who  contributed 
each  month  from  July    . 
1911  to  June  1,  1916. 

Additional  benefits  to  those 
who  contributed  part  of 
the  time  from  July  1.  1911, 
to  June  1,  1916,  because  of 
returningr  contributions. 

oS 
%% 
X& 

i 

v  « 

£ 

Present  value  of 
return  of  one- 
half  of  future 
contributions  in 
case  of  death  or 
withdrawal. 

Present  value  of 
return  of  total 
of  future  contri- 
butions in  case 
position  is  abol- 
ished 

«w.d 

°rtrt 

3«}£ 

3eS 

In 
B? 

£^° 

00" 

<L>  flj  O 

*ea 
rt  °,,_ 

>$* 

cSrt  . 

nil 

C*»;53 
£ 

20.... 

$239 
235 
231 
228 
224 
222 
221 
222 
223 
223 
223 
223 
222 
221 
219 
217 
215 
211 
208 
204 
199 

187 
179 
171 
161 
151 
139 
126 
112 
96 
80 
62 
43 
22 

$    313 
339 
368 
400 
436 
478 
529 
588 
654 
726 
804 
889 
982 
,082 
,192 
.311 
,440 
.580 
.733 
,897 
2,074 
2,266 
2,473 
2,693 
2,928 
3,178 
3,443 
3,723 
3,999 
4,331 
4,664 
5,021 
5,407 
5,825 
6.281 
6,783 
6.589 
6,392 
6,193 
5,991 
"»  789 

$60 
58 
59 
54 
52 
51 
49 
48 
46 
45 
43 
42 
40 
39 
36 
34 
33 
31 
28 
26 
24 
22 
20 
18 
16 
14 
12 
10 
8 
6 
5 
3 
2 
1 
0 

$5 
5 
5 
5 
5 
5 
4 
4 
4 
4 
4 
4 
4 
4 
4 
4 
4 
3 
3 
3 
3 
3 
2 
2 
2 
2 

0 
0 
0 
0 

$28 
28 
28 
28 
28 
28 
28 
27 
27 
26 
25 
25 
24 
23 
23 
22 
21 
21 
20 
19 
18 
17 
16 
15 
14 
13 
12 
11 
10 
9 

6 
5 
3 
2 

$2 
2 
2 
2 
2 
2 
2 
2 
2 
2 
2 
2 
2 
2 
2 
2 
2 
2 
2 
2 
2 
2 
2 
2 
2 
2 

0 
0 

$15 
15 
15 
15 
15 
15 
15 
14 
14 
14 
13 
13 
13 
12 
12 
12 
12 
12 
11 
11 
10 
9 
9 
8 
8 
8 
6 
6 
5 
5 
4 
3 
3 
1 
1 

21.. 

22  

23  
2t  

25.. 

26  

27  
28  

29  
30  
31.. 

32  
33.. 

34 

35.. 

36  

87.. 

88  

39.. 

40  

41.. 

42  
43... 

44  

45  
46  

47. 

48  

49 

50.... 

51. 

52  

53 

54.... 

55 

56 

57 

58 

59 

60 

61 

5,585 
5,381 
5.178 
4.974 
4,771 
4,570 
4,369 
4,171 
3,976 
3,784 
3.596 
3.411 
3.229 

62 

63 

64 

65 

66 

67... 

68 

69.... 

70  . 

71  

72.. 

73  

74.. 

3  052 

75.... 

2,876 
2.703 
2,531 
2,362 
2,194 
2,028 
1.865 
1  705 

76.. 

77. 

78... 

79.. 

80.... 

81.. 

82 

83.. 

1,548 
1,391 

84  

152 


TABBLE  LIX — (Municipal  Employees). 

PRESENT    VALUES    OF    CONTRIBUTIONS    AND    BENEFITS    PER    PARTICI- 
PANT ON  ASSUMPTION   OF  RETIREMENT  AT  AGE   60,   IF  ELIGIBLE. 


(1) 

(2) 

(3) 

(4) 

(5) 

Age. 

Present  value  of  f  utuf  e  con- 
tributions. 

Benefits  to  all  participants. 

Additional  benefits   to 
those  who  contributed 
each  month  from  July  1, 
1911,  to  June  1,  1916. 

Additional  benefits  to  those 
who  contributed  part  of 
the  time  from  July  1,  1911, 
to  June  1,  1916,  because  of 
returningr  contributions. 

Present  value  of 
pension  benefit. 

o££.SS 

ugHS-s  • 

l^lll 

>°^^a 
SS°So| 

<U  0H-I  *•>  <U  J3 

8«3§Sr 

(H  )-i.4  0  G  £ 

fc 

Present  value  of 
return  of  total 
of  future  contri- 
butions in  case 
position  is  abol- 
ished. 

Present  value  of 
$54.00  upon  death 
or  withdrawal. 

Present  value  of 
$108.00,  upon  ab- 
olition of  posi- 
tion. 

20.. 

$244 
240 
236 
233 
230 
228 
229 
230 
232 
233 
235 
235 
236 
236 
236 
236 
235 
234 
238 
230 
228 
225 
221 
217 
212 
206 
199 
191 
182 
173 
162 
150 
138 
125 
110 
95 
79 
61 
42 
22 

$    179 
194 
210 
229 
249 
273 
302 
336 
373 
414 
459 
508 
560 
618 
680 
748 
822 
902 
989 
1,083 
1,184 
1,294 
1,412 
1,537 
1,672 
1,815 
1,966 
2,126 
2,284 
2,473 
2,663 
2,867 
3,087 
3,326 
3,587 
3,873 
4,187 
4,529 
4,907 
5,327 
5,789 
5,585 
5,381 
5,178 
4,974 
4,  771 
4,570 

$63 
61 
60 
58 
56 
55 
54 
53 
52 
51 
50 
48 
47 
46 
44 
43 
41 
40 
38 
36 
34 
33 
31 
29 
27 
25 
23 
21 
19 
17 
15 
13 
11 
9 
7 
5 
4 
2 
1 
0 

$5 
5 
5 
5 
5 
5 
5 
5 
5 
5 
5 
5 
5 
5 
5 
5 
4 
4 
4 
4 
4 
4 
4 
3 
3 
3 
3 
2 
2 
2 
2 

0 
'0 
0 
*0 

$28 
28 
28 
29 
29 
29 
28 
28 
27 
27 
26 
26 
25 
25 
24 
24 
23 
22 
22 
21 
20 
20 
19 
18 
18 
17 
16 
15 
15 
14 
13 
12 
12 
11 
10 
8 

6 
4 
2 

$2 
2 
2 
2 
2 
2 
2 
2 
2 
2 
2 
2 
2 
2 
2 
2 
2 
2 
2 
2 
2 
2 
2 
2 
2 
2 
2 
2 
2 
2 
2 
1 
1 
1 
1 
1 
1 
1 
0 
0 

$15 
15 
15 
16 
16 
16 
15 
15 
14 
14 
14 
14 
14 
14 
13 
13 
12 
12 
12 
12 
11 
11 
10 
10 
10 
10 
9 
8 
8 
8 
8 
6 
6 
6 
6 
4 
1 
4 
2 
1 

21  
22  
23 

24.. 

25 

26.. 

27'  

28.. 

29.. 

30  
31.. 

32  
33  

34.. 

35 

36.. 

37 

38  
39.. 

40  
41  
42  
43  

44.. 

45  
46.. 

47  

48,. 

49  . 

50  
51.. 

52  
53  
54.. 

55  
56  
57.. 

58  
59.. 

60 

61 

62  
63 

64 

65 

66 

67 

4,369 
4,171 
3,976 
3,784 
3,596 
3  411 

68  
69 

70 

71 

72 

73 

3,229 
3,052 
2  876 

74  
75 

76  

77 

2,703 
2,531 
2.362 
2,194 

2,028 

78 

79 

80  

153 


TABLE  LIX— Concluded. 


(1) 

(2) 

(3) 

(4) 

(5) 

c 

Additional  benefits  to 

80-0,5 

0 

Benefits  to  all  participants. 

those  who  contributed 
each  month  from  July  1, 

Itj^jjjo 

1911,  to  June  1.  1916. 

2^3$£ 

Age. 

t  value  of  fu 
ions. 

t  value  of 
Dn  benefit. 

•Sgg-SS 

,>g2SSj 

,5^5.2rtrt 
rt  o  *{«£ 
>  <+-<gl0ni 
*jfi  =.-2^^ 

°3'Sl° 

ill 

*M 

f|g 

11! 

~S«~Hfl 

gSaSfl 

c  2 

s| 

0)  !-< 
!-j  •>-> 

11 

•~  ft 

||«H|S| 

sSSsi'l 

rc5<*H  *jj'<«  S 
gg'SS&S 

S8s 

sis 

ell! 

Iflit 

PH 

OH 

PH 

PH 

PH 

PH 

81 

$1  865 

82 

1  705 

83 

1  548 

04 

1,391 

TABLE  LX — (Municipal  Employees). 

PRESENT    VALUES    OF    CONTRIBUTIONS    AND    BENEFITS    PER    PARTICI- 
PANT ON  ASSUMPTION  OF  RETIREMENT  AT  AGE   65,   IF  ELIGIBLE. 


(1) 

(2) 

(3) 

(4) 

Additional  benefits  to  those 
who  contributed  part  of  ^ 
the  time  from  July  1,  1911,  w. 
to  June  1.  1916,  because  of 
returning  contributions. 

Age. 

Present  value  of  future  con- 
tributions. 

Benefits  to  all  participants. 

Additional  benefits  to 
those  who  contributed 
each  month  from  July  1, 
1911,  to  June  1,  1916. 

Present  value  of 
pension  benefit. 

Present  value  of 
return  of  one- 
half  of  future 
contributions  in 
case  of  death  or 
withdrawal. 

lijjlii 

Present  value  of 
$54  .00  upon  death 
or  withdrawal. 

Present  value  of 
$108.00  upon  abo- 
lition of  posi- 
tion. 

20. 

$247 
243 
240 
237 
234 
233 
234 
236 
238 
240 
242 
244 
245 
246 
247 
248 
249 
249 
249 
248 
248 
246 
245 
243 
240 
237 
232 
227 
220 
214 
207 

$  94 
102 
111 
121 
132 
144 
160 
177 
197 
219 
243 
268 
296 
326 
359 
395 
434 
477 
523 
572 
626 
683 
746 
812 
883 
959 
,039 
.123 
,207 
.307 
,407 

$68 
65 
63 
62 
60 
59 
58 
58 
57 
56 
56 
55 
54 
53 
52 
51 
50 
49 
48 
47 
45 
44 
43 
41 
40 
38 
36 
35 
33 
31 
29 

$5 
5 
5 
5 
5 
5 
5 
5 
5 
5 
5 
5 
5 
5 
5 
5 
5 
5 
5 
5 
5 
5 
5 
4 
4 
4 
4 
4 
3 
3 
3 

$28 
29 
29 
29 
29 
29 
29 
28 
28 
28 
27 
27 
26 
26 
25 
25 
24 
24 
24 
23 
23 
22 
22 
21 
21 
20 
20 
19 
19 
18 
18 

$2 
2 
2 
2 
2 
2 
2 
2 
2 
2 
2 
2 
2 
2 
2 
2 
2 
2 
2 
2 
2 
2 
2 
2 
2 

2 
2 

2 
2 
2 
2 

$15 
16 
16 
16 
16 
16 
16 
15 
15 
15 
14 
14 
14 
14 
14 
14 
13 
13 
13 
12 
12 
12 
12 
12 
12 
11 
11 
10 
10 
10 
10 

21  
22  
23  
24 

25  
26  
27 

28  
29.. 

30  
31.. 

32 

33  
34  
35  
36.... 
37  
38  
39.. 

40  
41  

42 

43  
44  
45  
46.. 

47 

48  
49. 

50  

TABLE  LX— Concluded. 


(1) 

(2) 

(3) 

(4) 

Additional  benefits  to  those 
who  contributed  part  of  ^ 
the  time  from  July  1,  1911,  £j 
to  June  1,  1916,  because  of 
returning-  contributions. 

Ag-e. 

Present  value  of  future  con- 
tributions. 

Benefits  to  all  participants. 

Additional  benefits  to 
those  who  contributed 
each  month  from  July  1, 
1911.  to  June  1,  1916. 

Present  value  of 
pension  benefit. 

Present  value  of 
return  of  one- 
half  of  future 
contributionsin 
case  of  death  or 
withdrawal. 

M-i  ^    '    <u    ' 
Cri'jH*  0 

sssss 

'g'sg-ss 
:^a§  . 
g^gs-g 

miss 

PLH 

Present  value  of 
$54.00  upon  death 
or  withdrawal, 

Present  value  of 
$108.00  upon  abo- 
lition of  posi- 
tion. 

51  

52.. 

$198 
190 
180 
171 
160 
149 
137 
125 
111 
93 
77 
60 
41 
21 

$1.514 
1,631 
1,757 
1,895 
2,046 
2,212 
2,393 
2,593 
2,815 
2,942 
3,201 
3,492 
3,814 
4,176 
4,771 
4,570 
4,369 
4,171 
3,976 
3,784 
3  596 

$27 
25 
22 
20 
18 
15 
13 
11 
9 
6 
5 
3 
2 
1 

$3 
2 
2 
2 
2 

1 
1 
1 
1 
1 
0 
0 
0 
0 

$18 
17 
17 
16 
15 
15 
14 
12 
12 
10 
9 
7 
5 
3 

$2 
2 
2 
2 

2 

0 
0 

$10 
10 
10 
9 
8 
8 
8 
6 
6 
6 
5 
4 
3 
2 

53  
54  
55. 

56  
57.. 

58  

59.. 

60  
61  

62 

63  
64  
65  

66  

67  

68  
69  

70  

71 

72  
73  . 

8,411 
3  229 

74  

3,052 

75  

2,876 
2,708 
2,531 
2,362 
2,194 
2,028 
1,865 
1,705 
1,548 
1,391 

76 

77  

78 

79  

80  . 

81 

82.. 

83 

84.. 

TABLE  LXI. —  (Municipal  Employees). 

PRESENT    VALUES    OF    CONTRIBUTIONS    AND    BENEFITS    PER    PARTICI- 
PANT ON  THE  ASSUMPTION  OF  RETIREMENT  AT  AGE  70,  IF  ELIGIBLE. 


(1) 

(2) 

(3) 

(4) 

(5) 

ti 

Additional  benefits  to 

w'on  o   . 

0 

Benefits  to  all  participants. 

those  who  contributed 
each  month  from  July  1, 

fltj^ii 

5 

1911,  to  June  1,  1916. 

o  ft^ro^ 

03  T3  "3  ^  ^ 

MH     • 

«w  •  <u  a  s-i 

MH  r-J  .  1      flj      1 

tfH  fl 

^  A 

ss^-0^ 

Ag-e. 

resent  value  of 
tributions. 

resent  value  o 
pension  benefit 

2  ^-^  0  0  £ 

resent  value  o 
return  of  tota 
of  future  contr 
butions  in  cas 
position  is  abo 
ished. 

resent  value  o 
$54.00  upon  deat 
or  withdrawal 

resent  value  o 
$108.00  upon  ab 
lition  of  po- 
sition. 

dditional  bene 
who  contribu 
the  time  from 
to  June  1,  1916 
returning-  cont 

fc 

ft 

ft 

PH 

k 

2 

20.... 

$248 

$46 

$68 

$6 

$29 

$2 

$16 

21.. 

245 

49 

67 

6 

29 

2 

16 

22  

242 

54 

66 

6 

29 

2 

16 

23  

239 

58 

64 

6 

29 

2 

16 

155 


TABLE  LXI — Concluded. 


(1) 

(2) 

(3) 

(4) 

(5) 

Age. 

Present  value  of  future  con- 
tributions. 

Benefits  to  all  participants. 

Additional  benefits  to 
those  who  contributed 
each  month  from  July  1, 
1911,  to  June  1,  1916, 

Additional  benefits  to  those 
who  contributed  part  of 
the  time  from  July  1,  1911, 
to  June  1,  1916,  because  of 
returning  contributions. 

Present  value  of 
pension  benefit. 

Present  value  of 
return  of  one- 
half  of  future 
contributionsin 
case  of  death  or 
withdrawal. 

Present,  value  of 
return  of  total 
of  futurecontri- 
butions  in  case 
position  is  abol- 
ished. 

Present  value  of 
$54.00  upon  death 
or  withdrawal. 

°i 
=  Sg 
$i+, 

^30 

dSsg 
£Szr2 

^5&^'5o 
PM 

24.,  

$237 
236 
237 
239 
241 
244 
247 
249 
251 
252 
254 
256 
257 
258 
258 
259 
260 
260 
260 
258 

255 
252 
248 
243 
239 
233 
227 
220 
214 
206 
199 
191 
183 
173 
164 
148 
137 
126 
113 
100 
90 
75 
59 
41 
22 

$     64 
70 
77 
86 
95 
106 
117 
130 
143 
158 
174 
191 
210 
230 
253 
277 
303 
330 
361 
393 
427 
464 
502 
543 
583 
632 
680 
732 
789 
850 
916 
989 
,069 
,157 
.254 
.361 
.423 
.548 
.688 
.844 
2.019 
2.304 
2,536 
2,798 
3,094 
3.423 
3,784 
3,596 
3,411 
3.229 
3.052 
2,876 
2,703 
2,531 
2,362 
2,194 
2,028 
1.865 
1,705 
1,548 
1.391 

$63 
62 
62 
61 
61 
61 
60 
60 
59 
59 
58 
58 
57 
57 
56 
55 
54 
53 
52 
51 
50 
49 
48 
47 
45 
43 
41 
40 
38 
36 
33 
31 
29 
26 
24 
21 
19 
16 
14 
12 
9 

5 
3 
2 
1 

$6 
6 
6 
6 
6 
6 
6 
6 
6 
6 
6 
6 
6 
6 
6 
6 
6 
5 
5 
5 
5 
5 
5 
5 
4 
4 
4 
4 
3 
3 

a 

3 
2 
2 
2 
2 
2 
1 

1 
1 
1 

0 
0 
0 
0 

$29 
29 
29 
29 
29 
28 
28 
27 
27 
27 
26 
26 
26 
25 
25 
24 
24 
24 
23 
23 
22 
22 
22 
22 
21 
21 
21 
21 
21 
21 
21 
20 
20 
19 
19 
18 
17 
16 
15 
14 
13 
12 
10 
8 
6 
3 

$2 
2 
2 
2 
2 
2 
2 
2 
2 

2 
2 
2 
2 
2 
2 
2 
2 
2 
2 
2 
2 
2 
2 
2 
2 
2 
2 
2 
2 
2 
2 
2 
2 
2 
2 
2 

1 
1 
1 
1 
1 
1 
1 
0 
0 

$16 
16 
16 
16 
16 
15 
15 
14 
14 
14 
14 
14 
14 
14 
14 
13 
13 
13 
12 
12 
12 
12 
12 
12 
12 
12 
12 
12 
12 
12 
12 
11 
11 
10 
10 
10 
9 
8 
8 
8 
7 
6 
6 
4 
3 
2 

25  

26  

27  
28  

29  
30  
31.. 

32  
33.. 

34  
35,. 

36  
37.. 

38  
39.. 

40  
41,. 

42  
43,. 

44 

45  
46.. 

47.... 

48.. 

49.. 

50  

51.. 

52  . 

53  
54.. 

55  
56  

57  
58  
59  

50  
Jl  

52  
53  
54  
55  

56.. 

57  
18  
59  

70  

71  

72.. 

73  

74.. 

75  

76  

77  

78  

79  

SI 

|| 

B  

14  

—11  PL 


156 

the  age  of  entrance  are  by  no  means  adequate  for  men  who  are  wdj 
along  towards  the  age  of  retirement. 

The  results  in  Table  LVII,  p.  150,  should  prove  to  be  fairlj 
effective  answers  to  questions  about  the  percentage  of  benefits  tc 
future  entrants  that  will  be  provided  for  by  their  own  contributions. 

To  illustrate  the  use  of  this  table,  we  may  note  that  for  a  grouj 
of  persons  entering  at  ages  between  32  and  33  years — the  average  ag< 
of  entrance  obtained  from  the  actual  experience — contributions  woulc 
purchase  about  20  per  cent  of  the  benefits  with  retirement  at  age  55 
a  little  more  than  35  per  cent  of  the  benefits  with  retirement  at  ag< 
60,  about  65  per  cent  of  the  benefits  with  retirement  at  age  65,  anc 
more  than  the  entire  benefits  under  the  assumption  of  retirement  a 
age  70. 

It  may  be  further  noted  that,  with  retirements  at  60,  a  group  o: 
persons  entering  at  20  and  experiencing  our  withdrawal  and  deatl 
rates,  would  practically  purchase  its  own  pensions. 

PRESENT    VALUES    OF    FUTURE    CONTRIBUTIONS    AND    BENEFITS    PER 

PARTICIPANT  ON   GIVEN   ASSUMPTIONS   AS  TO   AGES   AT 

RETIREMENT. 

Tables  LVIII,  LIX,  LX  and  LXI,  pp.  151,  152,  153  and  154 
respectively,  give  the  present  values  of  the  future  contributions  aiM 
benefits  on  the  given  assumptions  as  to  ages  at  retirement. 

To  save  space,  the  algebraic  formulas  and  commutation  column 
used  in  deriving  the  balance  sheets  from  the  given  data  are  not  ex 
hibited  here. 

THE    VALUATION    BALANCE    SHEET. 

While  Table  LVII,  p.  150,  has  to  do  with  future  entrants,  th-i 
balance  sheets  (Tables  LXII  to  LXV,  pp.  159  and  160)  have  to  d< 
only  with  the  financial  status  of  the  pension  fund  required  for  th 
active  service. 

The  balance  sheets  contain  the  answers  to  questions  in  regard  t 
the  accrued  liabilities  on  members  of  the  active  service  January  3 
1916. 

With  our  assumption  of  retirement  on  a  pension  at  age  55,  if  eligi 
ble  as  explained  above,  the  present  value  of  the  benefits  to  the  activ 
service  of  January  1,  1916,  is  $11,437,473.  Taking  from  this  th 
present  value  of  future  contributions  of  employees  in  the  active  servic 
and  the  funds  on  hand,  there  is  left  a  balance  of  $9,596,090  to  be  pro 
vided  from  sources  other  than  employees'  contributions,  or  to  be  re 
garded  as  a  deficiency.  As  the  Amendatory  Act  of  1915  requires  thai 
beginning  with  1916,  the  city  is  to  contribute  for  each  of  two  year; 
an  amount  equal  to  the  deductions  from  employees'  salaries  durin; 
the  previous  year,  there  is  a  further  asset  whose  present  value  is  prob 
ably  about  $270,000.  It  is,  of  course,  not  clear  what  part  of  this  shoul< 
be  devoted  to  the  present  active  service,  and  thus  appear  in  the  ball 
ance  sheet,  and  what  part  to  the  future  service,  but  it  is  fair  to  assum  I 
that  it  should  nearly  all  be  credited  to  the  present  active  service. 

With  our  assumption  of  no  retirement  on  pension  before  age  6( 
the  accrued  liabilities  are  such  that  the  excess  of  the  present  value  o 


157 

labilities  over  assets  is  $6,775,569,  when  we  exclude  the  contributions 
of  the  city.  With  a  valuation  of  $270,000  on  the  contributions  from 
he  city,  there  remains  a  deficiency  of  $6,505,569. 

Similarly,  with  no  retirements  below  age  65,  but  with  all  those 
eligible  at  this  age  accepting  pensions,  we  find  an  excess  of  the  present 
raltie  of  liabilities  over  assets  of  $4,761,133.  With  a  valuation  of 
>270.000  on  the  contributions  from  the  city,  we  have  a  deficiency  of 
*4,491,133. 

OBSERVATIONS  REGARDING  THE  DEFICIENCIES. 

We  have,  earlier  in  this  report,  in  dealing  with  the  Chicago 
eachers'  fund,  tried  to  explain  the  main  source  of  the  accrued  liabili- 
ies.  An  obligation  to  pay  pensions  to  men,  in  the  active  service,  who 
lave  been  making  no  contributions  or  inadequate  contributions,  starts 
pension  system  with  accrued  liabilities.  Under  the  municipal  em- 
)lovees'  fund,  the  precaution  was  taken  to  accumulate  a  fund  by 
ontributing  for  five  years  before  any  pensions  were  paid.  The  con- 
ributions  are  probably  inadequate  to  carry  the  interest  at  4  per  cent 
>n  the  accrued  liabilities,  and  hence,  the  accrued  liabilities  are  probably 
lot  less  than  they  were  on  July  1,  1911. 

'HE   PERCENTAGE   PENSIONS    WILL   BE   OF    SALARIES    WHEN    THE    SYSTEM 
CARRIES    ITS    ULTIMATE    NORMAL    LOAD. 

If  the  service  is  kept  up  to  a  fixed  size  by  the  addition  of 
mployees  at  age  32 — approximately  the  entrance  age  experienced  from 
uly  1,  1911,  to  January  1,  1916 — and  if  employees  withdraw  and  die 
t  rates  given  by  that  experience,  then,  when  the  service  reaches  the 
tate  where  it  carries  its  full  pension  burden,  we  find  the  following 
esults : 

1.  If  retirement  on  pensions  were  taken  at  age  55,  the  pension 
)ayments  would,  in  the  ultimate  normal  state  under  our  active  service 
able,  be  about  19  per  cent  of  salaries. 

2.  If  retirements  were  accepted  at  age  60,  the  pensions  would,  in 
he  ultimate  normal  state,  cost  about  12  per  cent  of  salaries. 

3.  Similarly,  with  age  65  for  retirement  on  pensions,  the  pensions 
vould,  in  the  ultimate  normal  state,  cost  about  7  per  cent  of  the 
alaries. 

4.  Likewise,  with  age  70  for  retirement  on  pensions,  the  pensions 
vould,  in  the  ultimate  normal  state,  cost  about  3.8  per  cent  of  salaries. 

It  should  be  remembered  that  these  predictions  involve  withdrawal 
ates  made  from  the  service  before  any  pensions  were  paid.  The  pay- 
nent  of  pensions  may  modify  these  rates  materially,  and  as  such 
hange  is  likely  to  take  the  form  of  a  decrease  in  withdrawals,  there 
/ill  probably  be  some  increase  in  the  relative  cost  of  pensions. 

THE  ACTIVE  SERVICE  CLASSIFIED  BOTH   BY  AGES  AND  LENGTHS  OF 

SERVICE. 

By  means  of  a  table  of  double  classification  (Table  XCII,  p.  184), 
show  the  number  of  employees  of  given  age  and  length  of  service. 


158 

From  this  table,  we  may  find  very  easily  the  number  of  persons  eligible 
to  a  pension  and  the  number  that  are  nearly  eligible. 

With  20  years  of  service  and  age  55  or  over,  we  find  297  em- 
ployees. If  all  these  who  are  eligible  should  apply  for  pensions,  it 
would  cost  at  once  $178,200  per  year  for  the  pensions.  We  note 
further  that  there  are  174  employees  with  20  years  of  service  and  of 
age  60  or  over.  There  are  76  with  20  years  of  service  and  of  age  65 
or  over. 

Furthermore,  we  may  form  an  idea  of  the  number  who  will  be 
eligible  within  the  next  few  years.  For  this  purpose,  we  find  that 
there  are  931  employees  with  15  or  more  years  of  service  and  of  age 
50  or  over.  We  may  perhaps  well  assume  that  when  an  employee  has 
five  or  fewer  years  to  serve  to  meet  the  requirements  for  a  pension,  he 
will  generally  remain  in  the  service  until  he  is  eligible  unless  he  accepts 
a  disability  pension.  This  means  that,  except  for  deaths,  we  should 
in  five  years  expect  nearly  931  employees  eligible  for  pensions.  The 
deaths  even  under  a  high  mortality  rate  would  probably  not  reduce 
this  number  below  750.  Hence,  five  years  later  than  January  1,  1916J 
we  may  well  expect  to  find  750  men  eligible  for  pensions  among  thet 
municipal  employees.  If  they  should  all  accept  the  pensions,  the  cost' 
would  amount  to  $450,000,  but  many  of  them  will  doubtless  prefer  to 
continue  in  the  service  instead  of  accepting  pensions. 

If  pensions  were  not  accepted  at  an  age  under  60,  but  all  those  of 
age  60  or  more  should  accept  them,  there  would  be  174  employees  elig- 
ible, and  the  pensions  would  cost  $104,400  per  year  at  present.  In  fivei 
years  from  now,  with  retirement  at  age  60,  there  would  probably  be< 
about  400  persons  eligible,  and  the  pensions  would  cost  $240,000  per 
year  if  all  eligible  accepted  pensions. 

If  pensions  were  not  accepted  at  ages  below  65,  but  all  at  age  65 
or  over  should  accept  them,  there  would  be  76  employees  eligible,  and 
pensions  would  cost  $45,600  per  year  at  present.  In  five  years  frorai 
now,  with  retirements  at  age  65,  there  would  probably  be  about  145. 
persons  eligible,  and  the  pensions  would  cost  $87,000  per  year  if  all 
eligible  accepted  pensions. 

The  foregoing  analysis,  under  different  assumptions  regarding 
the  age  of  retirement,  gives  a  fair  idea  as  to  what  should  be  expected 
within  a  period  of  five  years  from  January  1,  1916,  but  the  cost  for 
the  first  five  years  after  beginning  the  payment  of  pensions  does  not 
indicate  at  all  what  the  ultimate  cost  of  the  system  will  be,  or  what 
the  condition  of  the  fund  is  with  respect  to  solvency.  For  ultimate* 
costs  in  comparison  with  what  the  contributions  will  purchase,  we  must 
revert  to  Tables  LVIII  to  LXI,  pp.  151,  152,  153  and  154.  For  the 
solvency  of  the  fund  we  must  revert  to  the  balance  sheets  (Tables 
LXII  to  LXV,  pp.  159  and  160). 


159 


TABLE  LXII. —  (Municipal  Employees). 

BALANCE  SHEET  FOR  PENSION  FUND  FOR  MUNICIPAL  EMPLOYEES  OF 
CHICAGO  UNDER  ASSUMPTION  OF  RETIREMENT  AT  AGE  55,  AS  OF 
JANUARY  1,  1916. 


LIABILITIES. 

nt   value   of    pension   and 

withdrawal  benefits  to    active 

Jan.  1.  1916 


Total . 


$11,437,473 


$11,437,473 


ASSETS. 

Present  value  of  contributions  of 
employees  ($2.00  per  month)  — 

Present  value  of  contributions  of 
employees  to  make  up  balance 
of  $480  at  retirement.1. 

Cash  on  hand  and  invested  funds 

1  To  be  provided  from  other 
sources  than  employees'  con- 
tributions or  to  be  regarded  as 
a  deficiency 


Total. 


317,598 
525,682 


$11,437,473 


1  The  city  is  to  contribute  for  two  years  from  1916  an  amount  equal  to  de- 
ductions from  employees  during-  the  previous  fiscal  year.  This  would  probably  have 
a  present  value  in  the  neighborhood  of  $270,000. 

TABLE  LXIII. —  (Municipal  Employees). 

BALANCE  SHEET  FOR  PENSION  FUND  FOR  MUNICIPAL  EMPLOYEES  OF 
CHICAGO  UNDER  ASSUMPTION  OF  RETIREMENT  AT  AGE  60,  AS  OF 
JANUARY  1,  1916. 


LIABILITIES. 

Present  value  of  pension  and 
withdrawal  benefits  to  active 
service  Jan.  1, 1916... 


Total.. 


$8,640,678 


$8,640,678 


ASSETS. 

Present  value  of  contributions  of 
employees  ($2.00  per  month) 

Present  value  of  contributions  of 
employees  to  make  up  balance 
of  $480  at  retirement 

Cash  on  hand  and  invested  funds 

1To  be  provided  from  other 
sources  than  employees'  con- 
tributions or  to  be  regarded  as 
a  deficiency 


Total. 


$1,109,641 


229,786 
525,682 


6,775,569 


$8,640.678 


1  The  city  is  to  contribute  for  two  years  from  1916  an  amount  equal  to  de- 
ductions from  employees  during  the  previous  fiscal  year.  This  would  probably  have 
a  present  value  in  the  neighborhood  of  $270,000. 

TABLE  L.XIV.— (Municipal  Employees). 

BALANCE  SHEET  FOR  PENSION  FUND  FOR  MUNICIPAL  EMPLOYEES  OF 
CHICAGO  UNDER  ASSUMPTION  OF  RETIREMENT  AT  AGE  65,  AS  OF 
JANUARY  1,  1916. 


LIABILITIES. 

Present  value  of  pension  and 
withdrawal  benefits  to  active 
service  Jan.  1,  1916 


Total. 


$6,614,783 


$6,614,783 


ASSETS. 

Present  value  of  contributions  of 
employees  ($2.00  per  month) 

Present  value  of  contributions  of 
employees  to  make  up  balance 
of  $480  at  retirement 

Cash  on  hand  and  invested  funds 

1  To  be  provided  from  other 
sources  than  employees'  con- 
tributions or  to  be  regarded  as 
a  deficiency 


Total. 


$1,194.012 


133,956 
525.682 


4.761,133 


$6,614,783 


1The  city  is  to  contribute  for  two  years  from  1916  an  amount  equal  to  de- 
ductions from  employees  during  the  previous  fiscal  year.  This  would  probably  have 
a  present  value  in  the  neighborhood  of  $270,000. 


160 


TABLE  LXV. —  (Municipal  Employees). 

BALANCE  SHEET  FOR  PENSION  FUND  FOR  MUNICIPAL  EMPLOYEES 
CHICAGO  UNDER  ASSUMPTION  OF  RETIREMENT  AT  AGE  70,  AS 
JANUARY  1,  1916. 


OF 
OF 


LIABILITIES. 

Present  value  of  pension  and 
withdrawal  benefits  to  active 
service  Jan.  1,  1916 


Total. 


$3,520.024 


$3,520,024 


ASSETS. 

Present  value  of  contributions  of 
employees  ($2.00  per  month) 

Present  value  of  contributions  of 
employees  to  make  up  balance 
of  $480  at  retirement 

Cash  on  hand  and  invested  funds 

1  To  be  provided  from  other 
sources  than  employees'  con- 
tributions or  to  be  regarded  as 
a  deficiency 


Total. 


$1.268,589 


78,249 
525,682 


1,647,504 


$3,520,024 


1  The  city  is  to  contribute  for  two  years  from  1916  an  amount  equal  to  de- 
ductions from  employees  during  the  previous  fiscal  year.  This  would  probably  have 
a  present  value  in  the  neighborhood  of  $270,000. 


161 


ILLINOIS   STATE   TEACHERS'    PENSION   AND    RETIRE- 
MENT FUND. 

THE  BENEFITS. 

The  following  outline  gives  briefly  a  notion  of  the  benefits. 

Service  Pensions: 

Pension  of  $400  per  annum  is  paid;  to  anyone  who  retires 
after  attainment  of  age  50,  having  served  as  a  teacher  in  the  public 
schools  of  the  United  States  for  at  least  25  years,  the  last  15  of  which 
have  been  §pent  in  the  public  schools  of  this  State,  and  provided  the 
teacher  has  paid  the  sum  of  $400  into  the  fund. 

Disability  Pensions: 

Pension  of  $16  per  annum  for  each  year  of  service,  not  to  exceed 
$400  per  annum,  is  paid  to  one  who  retires  on  account  of  disability, 
provided  such  teacher  has  been  in  service  in  the  public  schools  of  the 
United  States  for  at  least  15  years,  the  last  9  of  which  have  been 
spent  in  the  public  schools  of  this  State,  and  provided  also  that  the 
sum  of  $400  has  been  paid  into  the  fund  by  such  teacher. 

DATA  USED  IN  VALUATION. 

As  already  stated  (see  p.  77),  the  data  on  which  we  based  our 
calculations  was  collected  through  the  offices  of  the  county  superin- 
tendents of  schools  in  all  cases  except  the  County  of  Cook.  The  only 
data  available  in  these  offices  was  the  age,  length  of  service  and  salary 
of  the  teachers  in  service  during  the  calendar  year  1915.  There  was 
no  way  by  which  we  could  gather  any  material  that  would  enable  us 
to  determine  the  rates  at  which  teachers  were  retiring  from  the  service 
without  pension.  Moreover,  the  pension  fund  was  not  in  existence 
before  January  1,  1916,  and  consequently,  it  had  no  pension  experience 
on  which  to  base  any  prediction  as  to  the  rates  at  which  members 
would  accept  pension  in  the  future.  As  no  tables  exhibiting  these 
rates  in  like  communities  among  groups  of  similar  employees  were 
available,  and  since  we  did  not  feel  justified  in  assuming  that  the 
withdrawal  experience  of  such  funds  as  offered  statistics  on  this 
point,  as  for  instance  the  Chicago  or  New  York  public  school  teachers' 
funds,  could  be  applied  with  safety  to  a  group  such  as  the  teachers 
involved  in  the  Illinois  State  system,  which  includes  a  large  number  of 
teachers  in  rural  schools  and  in  small  towns,  we  were  driven  to  base 
our  calculations  on  assumptions  that  certain  events  would  happen. 
These  assumptions,  made  after  careful  consideration  of  the  data 
furnished  by  the  county  superintendents,  were  two  in  number.  The 
first  predicts  fewer  retirements  on  pension  than  would  probably  occur 
in  actual  experience,  and  the  second  possibly  more  rapid  retirement  on 
pension  than  should  be  expected. 


162 


ASSUMPTIONS  MADE  IN  CALCULATIONS. 

These  assumptions  are  as  follows : 

1.  Of  the  group  eligible   for  pension,  those  whose  salaries  are 
under  $600  will  elect  to  retire  on  pension  when  the  conditions  of 
eligibility  are  satisfied;  and  those  whose  salaries  are  $600  or  over  will 
accept  pensions  at  various  ages,  centering  about  65  years,  in  such  a  way 
that,  for  purposes  of  calculation,  we  may  accept  age  65  as  the  age  of 
retirement.    This  assumption  will  be  referred  to  later  as  Hypothesis  I. 

2.  Same  as  1,  except  that  $800  is  substituted   for  $600.     This 
assumption  will  be  referred  to  as  Hypothesis  II. 

NUMBER  OF  TEACHERS  UNDER   FUND. 

On  the  teachers  of  Cook  County,  outside  of  Chicago,  no  data  was 
available  in  the  office  of  the  county  superintendent.  To  each  of  these 
teachers,  1,604  in  all,  we  mailed  a  card  with  a  circular  letter  and  self- 
addressed,  stamped  envelope,  requesting  the  desired  information.  In 
this  way  we  derived  data  on  slightly  less  than  50  per  cent  of  such 
teachers.  Of  the  101  remaining  counties  in  the  State,  94  of  the 
superintendents  cooperated  with  us  in  gathering  the  data.  We  thus 
collected  data  on  21,085  teachers  outside  of  Chicago. 

As  nearly  as  we  can  estimate,  the  teachers  of  Cook  County,  out- 
side of  Chicago,  from  whom  we  received  no  reply  and  those  in  the 
remaining  counties  whose  superintendents  failed  to  cooperate  with  us, 
not  including  those  in  the  City  of  Peoria,  total  approximately  5,000. 
We  thus  accepted  26,000  as  the  possible  number  of  teachers  coming 
under  this  fund. 

We  assumed  that  the  teachers  on  whom  data  was  collected  would 
afford  a  random  sample  of  the  whole  group.     On  this  assumption,, 
results  for  the  whole  group  were  found  by  multiplying  those  found! 
for  21,085  teachers  by  26,000,  and  dividing  by  21,085.     This  ratio,, 
assumed  to  be  26/21,  is  used  in  deriving  Tables  LXX  and  LXXI  from 
Tables  LXVIII  and  LXIX  respectively. 

CLASSIFICATION    OF   DATA    WITH    REGARD    TO   AGE,    SALARY    AND    LENGTH! 

OF    SERVICE. 

In  Table  LXVI,  we  present,  for  the  21,085  teachers  on  whom 
data  was  collected,  a  classification  in  five-year  periods  with  respect  to  > 
age  and  length  of  service  as  of  January  1,  1916.  From  this  table,  we 
derive  immediately  the  number  of  those  who  have  at  least  25  years  of 
service  and  are  also  at  least  50  years  of  age.  These  constitute  the 
group  eligible  for  pensions  January  1,  1916.  This  group  consists  of 
699  who  are  eligible  among  the  total  of  21,085. 

In  Table  LXVII,  we  present  a  classification  in  regard  to  age  and 
salary  of  these  699  teachers  eligible  for  pensions  January  1,  1916. 

MORTALITY   RATES. 

In  the  absence  of  data  from  which  to  derive  rates  of  mortality, 
we  made  application  of  the  rates  given  l  for  women  teachers  on  service 
pensions  in  New  York  City. 

PREDICTIONS  OF  COST  AT  INTERVALS  OF  FIVE  YEARS. 

It  is  not  claimed  that  Hypotheses  I  and  II  stated  above  will  give 
results  so  close  to  those  that  will  be  actually  experienced  as  to  make 

1  Report  on  the  Pension  Funds  of  the  City  of  New  York,  Part  II,  p.  103. 


163 


it  desirable  to  present  yearly  predictions  of  costs.     It  is  our  plan  to 

predict  annual  costs  at  five-year  intervals  beginning  in  1916.     As  it 

s  clear  that  the  system  could  not  be  in  full  operation  early  in  1916, 

he  prediction  for  1916  would  more  reasonably  apply  to  the  year  from 

July  1,  1916,  to  July  1,  1917. 

ASSUMPTIONS  IN  REGARD  TO  GROUPS  BECOMING  ELIGIBLE. 

We  treated  separately  the  group  eligible  January  1,  1916,  and 
the  groups  which  we  predict  will  become  eligible  in  the  future.  For 
the  group  eligible  January  1,  1916,  we  simply  applied  the  conditions 
stated  above  as  Hypotheses  I  and  II,  and  applied  rates  of  mortality 
to  determine  the  number  of  surviving  pensioners. 

In  treating  the  subgroup  of  teachers  who  are  not  eligible  at 
)resent  on  account  of  age  or  service,  but  who  will  be  eligible,  except 
:or  mortality  and  withdrawals,  in  five  years  from  January  1,  1916, 
we  calculated  the  expected  number  of  survivors  from  our  rates  of 
survival,  and  assumed  that  if  a  teacher  lacks  less  than  five  years  of 
laving  the  requisite  service  and  age  for  a  pension,  he  will,  in  general, 
remain  in  the  service  until  eligible  for  the  pension,  except  in  case  of 
death.  By  thus  carrying  forward,  with  rates  of  survival,  the  teachers 
of  the  subgroup  not  eligible  in  1916,  but  eligible  in  1921,  if  surviving, 
we  are  in  a  position  to  estimate  the  cost  of  pensions  in  1921  for  those 
who  go  on  the  pension  roll  in  the  five  years  from  1916  to  1921. 

We  further  assumed  that  on  January  1,  1921  (five  years  after  our 
valuation)  the  subgroup  which  is  not  eligible  in  1921  but  which  will 
)e  eligible  five  years  thereafter,  is  like  the  subgroup  just  discussed  in 
regard  to  predicted  costs  of  pensions.  The  validity  of  this  assumption 
involves  the  additional  assumptions  that  certain  withdrawal  rates  will 
continue  to  have  about  the  same  values  as  they  have  had  in  the  past, 
and  that  the  teaching  service  will  not  be  so  rapidly  extended  as  to  give 
us  a  very  abnormal  proportion  coming  on  the  eligible  list  in  any  five- 
year  period  in  the  future.  In  other  words,  for  the  future  we  assume 
hat  subgroups  will  progress  to  the  eligible  list  in  such  a  way  that  for 
each  five-year  period  we  have  a  new  eligible  subgroup  like  the  one  that 
we  predict  will  be  eligible  in  1921. 

As  explained  above,  these  assumptions  involve  the  idea  that,  for 
ages  under  50  or  service  periods  under  25  years,  the  service  has  reached 
a  somewhat  stationary  character  so  far  as  the  number  in  the  five- 
year  subgroups  near  the  age  of  retirement  are  concerned. 

On  the  whole,  it  is  more  likely  that  such  an  assumption  will  lead 
to  an  undervaluation  than  to  an  overvaluation,  as,  in  the  first  place, 
there  is  very  likely  some  tendency  towards  lower  withdrawal  rates  of 
teachers  as  a  community  becomes  older ;  and,  in  the  second  place,  the 
number  of  teachers  has  been  increased  considerably  within  the  past 
twenty  years. 

In  fact,  we  are  giving  a  valuation  as  if  the  number  of  teachers 
in  five-year  periods  has  remained  stationary  for  the  past  twenty  years. 
On  this  account,  it  is  not  unlikely  that  our  uncorrected  valuations 
(columns  2,  Tables  LXVIII  and  LXIX)  of  the  ultimate  annual  costs 
of  a  pension  system  for  a  teaching  force  of  the  size  of  that  under 
consideration,  should  be  increased  by  as  much  as  20  or  25  per  cent, 
as  is  shown  by  the  following : 


164 

An  examination  of  the  increase  in  the  number  of  teachers  in  the 
public  schools  covered  by  the  act  in  question  shows  that  the  increase  of 
the  total  number  of  teachers  for  each  five-year  period  over  the  number 
for  the  preceding  one  in  the  past  three  quinquennial  periods  is  about 
8  per  cent  for  1911-16  over  1906-11,  and  5  per  cent  for  1906-11  over 
1901-06.  Furthermore,  the  number  of  teachers  has  increased  over  50 
per  cent  in  the  last  30  years. 

The  costs  of  pensions  as  shown  in  column  marked  (5)  in  Tables 
LXVIII  and  LXIX  are  given  with  correctional  factors  applied  to  those 
eligible  in  the  future  by  increasing  the  valuation  for  1926  by  5  per  cent, 
that  of  1931  by  10  per  cent,  that  of  1936  by  15  per  cent,  and  each  of 
the  remaining  valuations  by  20  per  cent. 

TOTAL    CONTRIBUTIONS. 

On  account  of  the  fact  that  the  law  allows  a  teacher  employed 
before  January  1,  1916,  the  option  of  whether  he  will  come  under  the 
act,  and  gives  him  until  September  1,  1920,  to  elect  to  come  into  the 
system,  it  seems  impossible  at  present  to  offer  any  reliable  prediction 
concerning  the  total  amount  of  the  contributions  from  the  salaries  of: 
teachers. 

If  the  system  were  in  full  force  at  the  present  time,  with  the 
service  distribution  shown  in  Table  LXVI,  the  total  annual  contribu- 
tions from  the  21,085  teachers  on  whom  we  have  data  would  amount 
to  $162,750,  and  this  amount  multiplied  by  the  correctional  factor, 
26/21,  would  give  approximately  the  total  annual  contributions  for  all 
the  teachers  involved  in  the  act.  It  should  be  kept  in  mind  that  we  are 
making  predictions  on  the  basis  of  a  service  of  the  size  of  the  present 
one,  and  that  if  we  tend  to  approach  a  condition  with  a  larger  per- 
centage of  teachers  having  15  or  more  years,  of  service,  it  is  obvious 
that  the  contributions  will  increase.  In  fact,  it  does  not  seem  unlikely 
that  such  increase  would  amount  to  20  per. cent  in  the  ultimate  state, 
if  we  may  judge  from  the  increase  that  has  been  experienced  in  the 
service  during  the  past  20  years. 

DISCUSSION   OF   RESULTS. 

We  may  note  that  in  columns  marked  (3)  on  Tables  LXVIII  and 
LXIX,  we  find  the  total  predicted  costs  of  pensions  per  annum  at 
five-year  intervals  for  a  group  of  21,085  teachers,  when  we  apply  the 
methods  explained  above,  with  the  numbers  becoming  eligible  in  five- 
year  groups  held  constant. 

Under  Hypothesis  I,  these  predicted  costs  increase  for  about  50 
years  until  the  cost  amounts  to  $779,839.  Under  Hypothesis  II,  they 
increase  until  they  amount  to  $966,732.  If  we  apply  a  correctional 
factor  to  take  account  of  increases  in  the  service  during  the  past,  we 
obtain  for  the  ultimate  cost  under  Hypothesis  I,  the  value  $935,807 
shown  in  column  marked  (5)  in  Table  LXVIII,  and  under  Hypothesis 
II,  the  value  $1,160,078  shown  in  column  marked  (5)  in  Table  LXIX. 

In  Tables  LXX  and  LXXI,  we  show  the  resulting  estimate  cost 
for  all  teachers  covered  by  the  act.    Tables  LXVIII  and  LXIX  apply 
to  the  21,085  on  whom  we  collected  data  as  to  age,  length  of  service 
and  salary,  and  do  not  include  the  teachers  of  the  eight  counties  from  I 
which  we  failed  to  secure  data.    From  available  figures,  however,  we 


165 


estimate  that  there  are  in  the  neighborhood  of  26,000  teachers  covered 
by  the  act ;  and  our  estimates  in  Tables  LXX  and  LXXI  are  simply 
obtained  from  figures  in  Tables  LXVIII  and  LXIX,  by  multiplying 
those  figures  by  26/21  and  recording  results  to  the  nearest  $1,000. 

TABLE  LXVI.— (Illinois  State  Teachers,  male  and  female.) 

SHOWING  THE  NUMBER  OF  MALE  AND  FEMALE  TEACHERS  IN  ACTIVE  SERVICE  IN  THE 
ILLINOIS  STATE  TEACHERS'  PENSION  AND  RETIREMENT  FUND,  JANUARY  1,  1916,  CLASSI- 
FIED IN  GROUPS  ACCORDING  TO  YEARS  OF  SERVICE  AND  AGES  AS  OF  JANUARY  1,  1916.  (Basis 
of  21, 085  teachers.) 


Ages 
Inclusive. 

Years  of  service. 

Totals. 

0-4 
inch 

5-9 
inch 

10-14 
incl. 

15-19 
incl. 

20-24 
incl. 

25-29 
incl. 

30-34 
incl. 

35-39 
incl. 

40-44 

incl. 

45-49 
incl. 

50-55 
incl. 

17-19 

1,375 
7,272 
1,399 
266 
76 
37 
18 
8 
3 

4 
1,257 
2,832 
857 
230 
85 
31 
10 
4 

"'2 
1 

1 

1,379 
8,529 
4,602 
2,333 
1,416 
1,031 
807 
482 
331 
118 
46 
9 
2 

20-24  
25-29 

"'in' 

1,106 
461 
178 
79 
33 
9 
3 

30-34  
35-39 

104 
572 
343 
127 
41 
26 
5 
1 

"77 

345 
269 
95 
25 
15 
5 

40-44... 
45-49  

43 
247 

'36 

60-54  
55-59 

*154 
86 
23 
4 

119 
94 
23 

22 
70 
23 
8 
1 

14 
25 
13 

2 

'"9 
2 

"'2' 
2 
1 

60-64  
65-69  .  .  . 

70-74  
75-79  

1 

Totals  

10,  456 

5,314 

2,240 

1,219 

831 

557 

274 

124 

CA 

11 

5 

21,085 

The  numbers  enclosed  between  these  lines  represent  the  number  eligible  for  pensions,  January  1,  1916— in  all,  699. 

TABLE  LXVIL— (Illinois  State  Teachers,  male  and  female.) 
TEACHERS  UNDER  ILLINOIS  STATE  TEACHERS'  PENSION  AND  RETIREMENT  FUND,   WITH  25 
OR  MORE  YEARS  OF  SERVICE  AND  50  YEARS  OR  MORE  OF  AGE,  CLASSIFIED  IN  REGARD  TO 
SALARIES  (BASIS  OF  21.085  TEACHERS). 


A3e. 

Less  than 
$600. 

$600-8699 
inclusive. 

$700-$799 
inclusive. 

$800-$899 
inclusive. 

$900  and 
over. 

Totals. 

50... 

31 

12 

10 

9 

20 

82 

51  
52 

16 
20 

10 

7 

10 
6 

6 
3 

16 

17 

58 
53 

53  
54 

21 
13 

7 
9 

7 
7 

7 
4 

9 
18 

51 
51 

55  .. 

23 

9 

8 

3 

20 

63 

56 

22 

14 

14 

6 

13 

69 

57... 

21 

9 

5 

5 

19 

59 

58 

12 

11 

4 

5 

14 

46 

59 

11 

3 

2 

3 

8 

27 

60  
61 

5 
6 

9 
4 

2 

3 
1 

3 

8 

22 
20 

62  
63 

12 

7 

3 
3 

3 

6 
2 

23 
18 

64... 

5 

1 

1 

3 

11 

65 

6 

2 

1 

10 

66 

4 

2 

1 

2 

10 

67.. 

2 

1 

1 

2 

7 

98 

3 

2 

4 

9 

69 

1 

2 

70 

2 

2 

4 

71 

72 

1 

1 

73 

1 

1 

74 

1 

1 

75 

76 

77 

1 

1 

Totals 

244 

117 

86 

64 

188 

699 

166 


TABLE  LX VIII—  (Illinois  State  Teachers,  male  and  female.) 

SHOWING  TOTAL  FUTURE  COST  OF  PENSIONS  FOR  21, 085  TEACHERS  IN  THE  ILLINOIS  STATE 
TEACHERS'  PENSION  AND  RETIREMENT  FUND,  AND  THE  AMOUNT  OF  TEACHERS'  CONTRI- 
BUTIONS WHEN  THE  SYSTEM  IS  FULLY  IN  FORCE.  FIGURES  GIVEN  IN  FIVE  YEAR  INTERVALS 
(BASIS  OF  21, 085  TEACHERS). 

Results  under  Hypothesis  I. 


Year. 

(1) 

Pensions  to  those 
at  present  eligible. 

(2) 
Pensions  to  those 
eligible  in  future 
(present  active 
service  and  future 
entrants.) 

(3)  . 
Total  pensions  if 
the  number  be- 
coming eligible 
in  five  year 
groups  remains 
constant. 

(4) 

Total 
Contributions. 

(5) 

Total  pensions 
with  correctional 
factor  applied 
(See  p.  164.) 

1916. 

$108,  400 

$108,  400 

1921 

116  591 

$  91  708 

208,  299 

1926. 

153,467 

181,519 

334,  986 

$344,  062 

1931 

178  134 

278,  021 

456,  155 

483,  957 

1936. 

132,  969 

453,  927 

586,  896 

*  $162,750 

654,  985 

1941. 

86,097 

593,  434 

679,  531 

162,  750 

824,  047 

1946  
1951. 

45,452 
17,823 

691,  159 
747,  607 

736,611 
765,  430 

162,  750 
162,  650 

874,  843 
914,  951 

1956  
1961  
1966. 

4,576 
634 
33 

771,987 
778,  794 
779,  784 

776,  563 
779,  428 
779,817 

162,  750 
162,  750 
162,  750 

930,  960 
935,  187 
935,  774 

1971 

779,  839 

779,  839 

162,  750 

935,  807 

*We  do  not  predict  the  amount  of  the  contributions  bafore  1936  because  we  have  no  way  of  knowing  even  ap«  j 
proximately  the  number  of  experienced  teachers  who  will  elect  to  come  under  the  pension  system. 

TABLE  LXIX.— (Illinois  State  Teachers,  male  and  female.) 

SHOWING  THE  TOTAL  FUTURE  COST  OF  PENSIONS  FOR  21, 085  TEACHERS  IN  THE  ILLINOIS  STATE 
TEACHERS'  PENSION  AND  RETIREMENT  FUND,  AND  THE  AMOUNT  OF  TEACHERS'  CONTRIJ 
BUTIONS  WHEN  THE  SYSTEM  IS  FULLY  IN  FORCE.  FIGURES  GIVEN  IN  FIVE  YEAR  INTER" 
VALS  (BASIS  OF  21, 085  TEACHERS). 

Results  under  Hypothesis  II. 


Year. 

(1) 

Pensions  to  those 
at  present  eligible. 

(2) 
Pensions  to  those 
eligible  in  future 
(present  active 
service  and  future 
entrants). 

(3) 
Total  pensions  if 
the  number  be- 
coming eligible 
in  five  year 
groups  remains 
constant. 

(4) 

Total 
contri  butions. 

(5) 

Total  pensions 
with  correctional 
factor  applied 
(See  p.  164.) 

1916 

$185  200 

$185  200 

1921 

176  165 

$165  988 

342  153 

1926.... 

181,473 

319,  398 

500,  871 

$516,841 

1931  
1936  
1941  
1946  
1951  
1956  
1961...  
1966  
1971  

178,134 
132,969 
86,097 
45,452 
17,823 
4,576 
634 
33 

464,  914 
640,820 
780,  327 
878,  052 
934,  500 
958,  880 
965,  687 
966,  677 
966,  732 

643,  048 
773,  789 
866,  424 
923,  504 
952,323 
963,  456 
966,321 
966,  710 
966,732 

"*'$i<52,'750"' 
162,  750 
162,750 
162,  750 
162,  750 
162,  750 
162,  750 
162,  750 

689,  539 
869,  912 
1,022,489 
1,099,114 
1,139,223 
1,  155,  232 
1,159,458 
1,160,045 
1,160,078 

*  We  do  not  predict  the  amount  of  the  contributions  before  1936  because  we  have  no  way 
of  knowing  even  approximately  the  number  of  experienced  teachers  who  will  elect  to  come  under 
the  pension  system. 


167 


TABLE  LXX.— (Illinois  State  Teachers,  male  and  female.) 
SHOWING  ESTIMATED  FUTURE  COSTS  OF  PENSIONS  FOR  THE  ENTIRE  GROUP  OF  TEACHERS 
COVERED  BY  THE    ACT,     REGULATING  THE  ILLINOIS  STATE    TEACHERS'  PENSION  AND 
RETIREMENT  FUND  AND  THE  CONTRIBUTIONS   WHEN   THE  SYSTEM   COMES  FULLY  INTO 
FORCE  (BASIS  OF  26,000  TEACHERS). 

Results  under  Hypothesis  I. 


(1) 

(2) 

(3) 

Total  cost  of  pensions  if 

Year. 

Total  cost  of  pensions  if 
the  number  becoming  eli- 
gible in  five  year  groups 
remains  constant. 

Total 
contributions. 

we  apply  the  correctional 
factor  to  allow  certain  varia- 
tions in  the  number  becom- 
ing eligible.    (See  p.  164.) 

1916 

$134  000 

1921 

258,  000 

1926                         

415,  000 

$    426,000 

1931 

565,  000 

599,  000 

1936                   

727,  000 

$201,  000 

811,000 

1941 

841,000 

201,000 

1,020,000 

1946 

912,000 

201,  000 

1,083,000 

1951                                    

948,000 

201,  000 

1,  133,  000 

1956 

961,000 

201,000 

1,  153,  000 

1961                                    

965,  000 

201,000 

1,159,000 

1966            

965,  000 

201,000 

1,159,000 

1971                                  

966,  000 

201,  000 

1,  159,  000 

iThe  estimated  costs  in  Tables  LXX  and  LXXI  are  obtained  by  multiplying  results  in  Tables  LXVIII  and  LXIX 
by  26-^21,  and  recording  the  products  only  to  the  nearest  $1, 000. 

TABLE  LXXI—  (Illinois  State  Teachers,  male  and  female.) 
SHOWING  ESTIMATED  FUTURE  COSTS  OF  PENSIONS  FOR  THE  ENTIRE  GROUP  OF  TEACHERS 
COVERED  BY  THE  ACT,   REGULATING  THE  ILLINOIS  STATE  TEACHERS'  PENSION  AND  RE- 
TIREMENT FUND  AND  THE  CONTRIBUTIONS  WHEN  THE  SYSTEM  COMES  FULLY  INTO  FORCE 
(BASIS  OF  26,000  teachers) 

Results  under  Hypothesis  II. 


Year. 

(1) 

Total  cost  of  pensions  if 
the  number  becoming  eli- 
gible in  five  year  groups 
remains  constant. 

(2) 

Total 
contributions. 

Total  cost  of  pensions  if 
we  apply  the  correctional 
factor  to  allow  certain  vari- 
ations in  the  number  becom- 
ing eligible.    (See  p.  164.) 

1916 

$    229,000 

1921 

424  000 

1926 

620,  000 

$    640,000 

1931 

796,  000 

854,  000 

1936...                      
1941 

958,  000 
,  073,  000 

$201,  000 
201,000 

1,077,000 
,  266,  000 

1946                  

,143,000 

201,000 

,361,000 

1951 

,  179,  000 

201,000 

,  410,  000 

1956          

,  193,  000 

201,  000 

,430,000 

1961                                        

,  196,  000 

201,  000 

,  436,  000 

1966        

,  197,  000 

201,  000 

,  436,  000 

1971                                

,  197,  000 

201,  000 

,  436,  000 

SALARIES. 

In  Table  XCV,  Chapter  VI,  p.  186,  we  show  a  classification  of 
the  21,085  teachers  from  94  counties  with  respect  to  salaries.  It 
should  be  noted  that  4,912  of  these  teachers  receive  less  than  $400  per 
year,  the  amount  of  the  pension. 

It  is  found  that  the  total  of  salaries  for  the  group  of  21,085  teach- 
ers amounts  roughly  to  $11,000,000. 

GENERAL  STATEMENT  CONCERNING  THE  ULTIMATE  COST. 

While  there  is  considerable  variation  in  the  results  that  we  have 
obtained  from  different  hypotheses,  it  seems  fairly  safe  to  say  that  the 
ultimate  annual  pension  payments  under  the  present  system  will 
amount  to  between  7  and  12  per  cent  of  the  annual  salary  payments. 
On  the  basis  of  available  information,  it  does  not  seem  safe  to  make 
a  much  more  definite  prediction  than  this  at  the  present  time. 


168 
CHAPTER  VI. 


STATISTICS     RELATING     TO     THE     FUNDS     CREATED 

UNDER  THE  SEVERAL  PUBLIC  SERVICE  PENSION 

ACTS  OF  THE  STATE  OF  ILLINOIS. 

Of  the  fifteen  pension  acts  on  the  statute  books  of  Illinois  on 
January  1,  1916,  one,  namely,  the  Fire  Insurance  Patrolmen's  Act, 
does  not  involve  the  expenditure  of  public  money ;  another,  namely, 
the  Act  of  1915  relating  to  park  police,  was  not  put  into  force 
November  1,  1916;  and  a  third,  namely,  the  Act  for  county  em- 
ployees of  Cook  County  was  declared  invalid  on  August  2,  1916. 

Of  the  remaining  twelve  acts,  the  one  relating  to  the  State 
Teachers'  Pension  and  Retirement  Fund,  is  State-wide  in  its 
scope  after  excluding  the  cities  of  Chicago  and  Peoria.  The  Fire- 
men's Act  applies  to  all  cities,  towns  and  villages  of  5,000  or  more 
inhabitants.  The  9,000  to  50,000  Policemen's  Act  is  self  explana- 
tory, with  respect  to  the  slope  of  its  application.  The  Policemen's  Act 
relating  to  cities  of  50,000  or  more  inhabitants  is  self  explanatory 
except  that  Chicago  is  excluded.  The  Teachers'  Act,  applying  to 
cities  of  65,000  or  more  inhabitants,  relates  only  to  the  city  of  Peoria. 
The  seven  remaining  acts  apply  to  institutions  situated  in  the  city  of 
Chicago.  Under  these,  the  beneficiaries  are : 

Chicago  policemen ;  Chicago  public  school  teachers ;  Municipal 
employees  of  Chicago;  Park  policemen;  Public  school  employees; 
Public  library  employees ;  Employees  of  the  House  of  Correction. 

To  determine  the  number  and  extent  of  the  funds  outside  of 
Cook  County  in  operation  under  the  Firemen's  Act  and  the  two 
police  acts  not  applicable  to  Chicago,  we  addressed  a  letter  on 
March  2,  1916  to  the  mayor  of  each  city,  town  or  village  of  5,000  or 
more  inhabitants  in  the  State,  requesting  information  regarding 
the  existence  of  pension  funds  in  the  corporation  under  his  adminis- 
tration. This  letter  was  followed  by  another  on  April  27  and  a 
third  on  August  21.  The  result  was  that  replies  were  received  from 
all  such  corporations,  excepting  the  cities  of  Spring  Valley  and 
Mount  Carmel.  Judging  from  the  size  of  these  cities,  it  is  to  be 
presumed  that  no  pension  funds  exist  in  either  of  them,  so  that  we 
may  state  with  confidence  that  all  the  pension  funds  in  this  State] 
outside  of  Chicago  not  listed  above,  are  for  the  beneficiaries  and  inj 
the  cities  listed  below. 

For  Firemen :     Peoria,  East  St.  Louis,  Springfield,  Rockford, 
Joliet,   Decatur,   Aurora,   Elgin,   Bloomington,   Evanston,   Moline,  j 
Oak  Park,  Sterling. 

For  Policemen:  Act  relating  to  cities  of  9,000  to  50,000  in- 1 
habitants:  Rockford,  Joliet,  Decatur,  Aurora,  Bloomington,] 
Evanston,  Moline,  Champaign,  Quincy. 

For  Policemen.  Act  relating  to  cities  of  50,000  or  more  in- 
habitants: Peoria,  Springfield. 

The  object  of  this  chapter  is  to  present  in  tabular  form  further 
statistics  than  those  given  in  Chapter  V  relating  to  the  several 
pension  funds. 


169 


TABLE  LXXII— (Chicago  Policemen). 

HOWING   BY   AGES   AS   OF   JANUARY    1,    1916     THE    NUMBER   IN    ACTIVE   SERVICE    OR    ON 

PENSION  ON  THAT  DATE. 


Age 

Active 
Service 

Disability 
Pensioners 

Service 
.  Pensioners 

Widows 
•    Clas^Ai 

Widows 
of 
Class  B  i 

Widows 
of 
Class  C  i 

Age 

Families  of  Children 
with  respect  to  age 
of  youngest  child. 

j2 
23 

1 
1 

7 
8 

1 

24   . 

9 

2 

J6.  .  . 

9 

28 

10 
11 

2 
4 

28"  ' 

104 

78 

12 
13 

1 

4 

) 
1 

133 
142 

1 
1 

1 

1 

14 
15 

2 
6 

201 
207 

1 

220 
209 

2 

2 

"'2' 

""a" 

210 
255 
211 

'"a 



3 

i 

2 
2 

250 
234 

1 

2 
5 

"  '5 

151 

i 

3 

1 

5 

111 



4 

5 

115 

3 

4 

4 

115 

3 

4 

6 

6 

117 

2 

1 

4 

6 

7 

100 
101 

1 
1 

2 
9 

3 

6 

6 
6 

10 
12 



99 

1 

10 

2 

5 

8 

102 

11 

5 

7 

11 

104 
127 

2 
1 

17 
19 

8 
5 

6 
12 

5 

9 

109 

21 

9 

16 

20 

120 

2 

21 

5 

8 

9 

129 
130 

3 

21 

28 

6 
1 

17 

7 

17 
11 



99 
109 

5 

4 

31 

26 

6 
4 

13 
15 

19 
10 



87 

2 

30 

4 

11 

10 

76 

5 

24 

3 

g 

11 

55 

3 

21 

7 

6 

2 

39 

2 

29 

2 

7 

3 

38 

21 

2 

2 

4 

23 

1 

17 

3 

11 

5 

17 

2 

23 

1 

10 

3 

14 

14 

2 

6 

5 

65 

14 

10 

2 

9 

4 

66  
67 

9 
13 

'"2 

13 
10 

2 
1 

13 
4 

5 
2 

68.. 

7 

14 

1 

3 

1 

69 

5 

1 

18 

5 

3 

70  
71 

3 

14 
15 

1 
1 

7 
3 

4 

4 

72 

12 

2 

2 

2 

73 

1 

9 

6 

3 

74 

9 

2 

75 

5 

4 

76 

7 

2 

1 

77. 

1 

4 

3 

1 

78 

3 

1 

79 

3 

1 

80 

3 

1 

2 

81 

2 

1 

82 

2 

83 

1 

1 

84 

85 

86.. 

1 

Totals 

4,830 

46 

555 

123 

278 

255 

Total 

22 

1  For  definitions,   see  page   91. 


170 


TABLE  LXXIII— (Chicago  Policemen). 

SHOWING  THE  NUMBER  AND  SALARIES  OF  POLICEMEN  IN  ACTIVE  SERVICE  ON  JANUARY 
1,  1916,  CLASSIFIED  BY  YEARS  OF  SERVICE. 


Years 
of 
Service 

$900  to 
$999 
Inclusive 

$1,000  to 
$1,249 
Inclusive 

$1,250  to 
$1,499 
Inclusive 

$1,500  to 
$1,749 
Inclusive 

$1,750  to 

$1,999 
Inclusive 

$2,000  to 
and 
over 

Totals 

0... 

] 

| 

i 

i 

1 

t- 

89 
06 
5 
1 
1 
1 

i 

2 

>> 

i 

: 

3 
281 
55 
6 
16 
5 
5 
11 
9 
11 
7 
9 
8 
2 
4 
6 
3 
1 
13 
5 
11 
10 
8 
6 
4 
5 

'"»'" 

2 
4 

92 
396 
184 
113 
226 
250 
143 
74 
381 
657 
422 
32 
33 
88 
19 
116 
22 
13 
74 
206 
91 
103 
62 
226 
159 
114 
150 
78 
82 
49 
32 
62 
5 
36 
11 
9 
4 
1 
2 
3 
5 

1  
2  

9 
123 
105 
208 
244 
136 
63 
372 
625 
387 
23 
24 
72 
15 
80 
17 
8 
52 
141 
55 
68 
42 
167 
117 
81 
103 
51 
56 
29 
26 
38 
2 
25 
7 
7 
3 

'"i"' 

3...  

1 

4  
5  

1 

6  
7  

2 

9  
10  
11  

21 
26 

""i"' 

10 

'"i**" 

'"2"' 

5 
39 
17 
17 
7 
36 
24 
13 
23 
15 
13 
10 
2 
8 
1 
4 
1 

'  "i"' 
'"2"" 

::::: 

13  
14  
15  ... 

'"2"" 

3 
1 
2 
2 
6 
3 
3 
3 
8 
10 
11 
14 
6 
4 
3 
2 
5 
1 
1 

8 
1 

16  

17  

18  
19  
20..  .. 

2 
15 
5 
5 
2 
9 
4 
4 
10 
3 
7 
3 
2 
10 
1 
5 
2 
2 

21  
22  
23 

24  

25..   .. 

26  
27  
28 

29  
30 

31... 

1 
....._... 

32  

33 

34.  
35  

36..., 

1 

37  

38.... 

1 

2 
2 
5 

39  
40  

1 

41  

42  

4 

1 

5 

Totals    .... 

203 

516 

3,594 

321 

92 

104 

4,830 

TABLE  LXXIV.— (Chicago  Policemen). 

SHOWING  THE  NUMBER  OF  CHICAGO  POLICEMEN  IN  ACTIVE  SERVICE  JANUARY  1,  1916, 
CLASSIFIED  IN  GROUPS  ACCORDING  TO  YEARS  OF  SERVICE  AND  AGES  AS  OF  JANUARY  1, 
1916. 


Ages 
Inclusive 

YEARS  OF  SERVICE 

Totals 

0-4 
Years 
Inclusive 

5-9 
Years 
Inclusive 

10-14 
Years 
Inclusive 

15-19 
Years 
Inclusive 

20-24 
Years 
Inclusive 

25-29 
Years 
Inclusive 

30-34 
Years 
Inclusive 

35-39 
Years 
[nclusive 

40-42 
Years 
Inclusive 

25-29... 

347 
430 
204 
19 
7 
3 

5 
509 
752 
202 
19 
5 
10 
2 

352 
979 
1,160 
609 
506 
615 
426 
131 
48 
4 

30-34    . 

40 
181 
225 
105 
28 
12 
2 

'"is" 

109 
140 
119 
32 
11 
1 
1 

'"5" 
52 
192 
257 
121 
9 
5 

35-39  
40-44.  .  .     . 

2 
43 
183 
180 
59 
5 
1 

45-49 

50-54  
55-59.... 

17 
69 
41 
18 

3 

2 
5 
9 

60-64 

1 

1 

8 

1 

65-69  
70-73.... 

Totals    .... 

1,011 

1,505 

594 

431 

641 

473 

146 

19 

10 

4,830 

171 


TABLE  LXXV— (Chicago  Policemen). 
SHOWING    THE     NUMBER    OF    MEN    IN    ACTIVE    SERVICE    WITH    20    YEARS    OR    MORE    OF 
SERVICE  TO  THEIR  CREDIT  ON  JANUARY  1,  1916,  CLASSIFIED  INTO  GROUPS  ACCORDING  TO 
NUMBER  OF  YEARS  MARRIED. 


3 

3 

o 
> 
•55 

> 
•ffl 

£ 

i 
p 

11 

<! 

•< 

•§> 

N 

PQ 

« 

c 

11 

0 

0 

c 

13 

Q 

Q 

11 

*« 

Percentage  of 
total  number  in 

Age 

Number  Ma 
Years  incl 

11 

g 

^•2 

age  Age  of 
fe  in  Colum 

Number  Ma 
Years  incl 

ii 

P 

•B-2 

1 

-^ 

Number  Ma 
10-14  Yrs. 

1" 

•sj§ 

ll 

Is 

^  «S 

Number  Ma 
15-19  Yrs. 

11 

•s-3 

"8.3 

<u   O 

iP 

Number  Ma 
Years  or  n 

1  Number  o 
arried  Men 

fa 
ll 
H 

group  compared 
with  total  number 
of  married 
men  as 
given  in  the  Table 

A 

1^ 

lr 

B 

if 

|£ 
•4 

C 

r 

g£ 
-*J 

D 

r 

2£  E^ 

<j 

E 

Is 

F 

s 

38 

1 

37 

37 

j 

1 

38 

Group  A         38 

39  

1 

34 

34 

2 

38 

39 

3 

1 

39 

40 

1 

40 

40 

1 

37 

37 

1 

32 

32 

1 

4 

1 

40' 

Group  B         46 

41 

3? 

3? 

2 

40 

40 

3 

3 

41 

42... 

1 

36 

36 

2 

35 

38 

35 

35 

1 

5 

0 

42 

Group  C         8.1 

43  

?, 

38 

33 

31 

36 

5 

32 

38 

2 

13 

4 

43 

44  

4 

29 

35 

33 

39 

3 

36 

39 

9 

20 

1 

44 

Group  D       10.2 

45... 

1 

39 

39 

?, 

30 

36 

42 

42 

4 

36 

39 

10 

18 

2 

45 

46  

2 

34 

34 

4 

34 

38 

8 

35 

41 

5 

35 

43 

20 

39 

5 

46 

Group  E        73.3 

47... 

5 

28 

40 

1 

38 

38 

4 

31 

37 

9 

37 

40 

25 

44 

8 

47 

48  

1 

36 

36 

5 

30 

39 

8 

34 

3!) 

10 

38 

44 

24 

48 

7 

48 

100.0 

49  

en 

3 

36 

OQ 

38 

AC 

3 

3 

41 
39 

42 
50 

5 

7 

34 
40 

43 
43 

4 
12 

43 
35 

45 
41 

37 
07 

52 
fid 

12 
1  ^ 

49 
en 

51  

2 

25 

32 

2 

43 

47 

6 

37 

42 

10 

35 

44 

41 

61 

6 

51 

52  

2 

34 

37 

2 

40 

42 

3 

33 

41 

7 

38 

45 

64 

78 

14 

52 

Percentage  of 

53 

| 

46 

48 

7 

31 

41 

10 

35 

46 

8 

41 

43 

68 

95 

14 

53 

total  number  in 

54  

1 

33 

33 

4 

32 

42 

5 

38 

42 

9 

41 

44 

76 

95 

17 

54 

group  compared 

55  

2 

25 

40 

1 

40 

40 

4 

40 

49 

4 

43 

51 

56 

67 

12 

55 

with  total  number 

56... 

8 

38 

47 

4 

35 

48 

2 

39 

47 

70 

79 

18 

56 

of  married  and 

57  

2 

46 

48 

1 

43 

43 

1 

38 

38 

5 

38 

46 

57 

66 

11 

57 

unmarried  men  as 

58... 

1 

40 

40 

4 

36 

41 

3 

40 

44 

2 

51 

53 

46 

56 

12 

58 

given  in  the  Table 

59  
fiO 

2 
2 

42 

OQ 

47 
37 

1 

50 

50 

2 

49 

53 

1 

41 

41 

39 
19 

42 

OX 

9 

59 
60 

61  

39 

39 

1 

52 

52 

26 

28 

6 

61 

Group  A         3.3 

62 

i 

44 

44 

15 

16 

3 

62 

63  

1 

44 

44 

1 

43 

43 

8 

10 

4 

63 

64 

3 

50 

51 

1 

40 

40 

8 

12 

1 

64 

Group  C         6.8 

65  

1 

66 

66 

11 

12 

65 

Group  D         8.5 

66 

7 

7 

1 

66 

67 

1 

60 

60 

1 

63 

63 

q 

11 

9 

67 

68     . 

? 

2 

4 

68 

Group  F        16.1 

69 

1 

48 

48 

\ 

5 

69 

70    .. 

'  V 

70 

100.0 

Totals. 

42 

50 

87 

109 

792 

1,080 

209 

—12  PL 


172 


173 


TABLE  LXXVII— (Chicago  Firemen). 

SHOWING   BY   AGES   AS   OF   JANUARY    1,    1916   THE    NUMBER   IN   ACTIVE   SERVICE    OR    ON 

PENSION  ON  THAT  DATE. 


Age 

Active 
service 

Disability 
pensioners 

Service 
pensioners 

Widows 
of  class 
A 

Widows 
of  class 
B 

i  Widows 
of  class 
C 

Age 

Children 
on 
pension 
roll 

23 

6 

0-  1 

0 

24... 
25 

17 
30 

"'i'" 

1 
0 

1-  2 

2-  3 

4 
1 

26  

39 

o 

1 

3-  4 

7 

27 

46 

2 

4 

4-  5 

5 

28  
29 

56 
66 

0 
2 

0 
2 

5-  6 
6-  7 

13 
12 

30  

87 

1 

1 

7-  8 

12 

31 

109 

1 

0 

8-  9 

12 

32  

93 

1 

1 

0 

9-10 

7 

33  
34 

92 
73 

'"2 

2 
2 

0 
3 

10-11 
11-12 

10 
10 

35  
36 

83 

79 

2 
1 

1 
3 

1 
3 

12-13 
13-14 

13 
24 

37  
38 

77 
75 

2 

7 

2 
1 

1 
1 

2 

4 

14-15 
15-16 

22 
12 

39 

70 

4 

3 

4 

40 

80 

1 

1 

1 

2 

41 

53 

2 

3 

3 

2 

42 

53 

2 

2 

o 

4 

• 

43  
44 

59 
66 

4 
3 

3 

3 

o 

4 
2 

3 
6 

45 

52 

3 

4 

5 

4 

2 

46 

53 

5 

4 

5 

4 

5 

47 

44 

6 

4 

7 

o 

3 

48 

42 

1 

7 

1 

3 

49... 
50  

43 
41 

4 
3 

3 
5 

1 
3 

4 
4 

2 
3 

51  
52  

46 

24 

'"3"' 

7 
7 

2 
5 

3 
3 

4 
3 

53  
54 

51 
29 

3 

4 

7 
8 

5 

o 

5 

7 

0 
2 

55  
56 

25 
19 

5 

15 

8 

3 
2 

4 
4 

2 
4 

57  
58 

23 
18 

1 
1 

5 

4 

0 

o 

4 
1 

0 
0 

59  
60 

15 
11 

2 
1 

4 
12 

2 
1 

4 
4 

2 
2 

61  
62 

2 
2 

3 
1 

2 
2 

2 
2 

5 
4 

0 
0 

63  

9 

2 

4 

1 

3 

2 

64     . 

5 

5 

o 

4 

2 

65  

1 

4 

1 

5 

0 

66  
67... 

4 
2 

4 
3 

1 
1 

7 
2 

0 

68  
69... 

3 

'    2 
6 

0 
0 

2 
4 

0 
1 

70  
71 

1 
3 

2 

1 

4 

72 

j 

6 

o 

73 

3 

1 

74 

2 

o 

75  

2 

2 

76 

j 

1 

1 

1 

77  

2 

1 

78 

2 

79  

80              .   . 

1 

81 

1 

82  

1 

83 

1 

84  

1 

85 

89  

1 

Totals.... 

1,973 

83 

164 

84 

122 

85 

Total  

164 

1  For  definitions,  see  page  112. 


174 


TABLE  LXXVIII— (Chicago  Firemen). 

SHOWING  THE  NUMBER  AND    SALARIES  OF  FIREMEN  IN  ACTIVE  SERVICE  ON  JANUARY   1 
1916,  CLASSIFIED  BY  YEARS  OF  SERVICE. 


Years 
of 
Service 

Less 
than 
$1,000 

.$1,000- 
$1,249 
Inclusive 

$1.250- 
$1,499 
Inclusive 

$1,500- 

$1,749 
Inclusive 

$1,750- 
$1,999 
Inclusive 

$2,000- 
$2,249 
Inclusive 

$2,250- 
$2,499 

Inclusive 

$2,500- 
$2,749 
Inclusive 

$2,750- 
$2,999 
Inclusive 

$3,000- 
and 
over 

Totals 

0 

5 

6 
51 
55 
3 

1 

7 
36 
108 
69 
84 
90 
61 
135 
248 
40 
40 
89 
21 
18 
27 
22 
24 
21 
17 
14 
10 
16 
19 
18 
.15 
8 
11 
14 
5 
7 
1 
1 
3 

....... 

'"i"' 

'"i"' 

'"i"' 

i 

12 
59 
94 
111 
70 
84 
94 
70 
.    146 
273 
63 
55 
114 
35 
31 
42 
43 
38 
49 
42 
31 
29 
25 
54 
52 
33 
36 
26 
37 
21 
35 
12 
13 
9 
5 
7 
4 
2 
7 
3 
2 

2 
1 

1  
2  
3  
4  
5.. 

6  
7... 

3 
8 
10 
23 
18 
13 
17 
9 
8 
2 
16 
10 
14 
15 
10 
12 
4 
18 
15 
11 
12 
7 
7 
6 
13 
4 
3 
3 
5 
1 
1 

'"i"' 

1 

8 

1 
1 

9  
10  
11 

1 
1 

3 
2 
8 
5 
5 
8 
3 
4 
11 
8 
5 
7 
4 
13 
16 
6 
9 
6 
10 
9 
11 
7 
7 
2 

12  
13 

14  
15  
16.... 

'"l" 
2 

'"i"' 

'"2"' 

'"i"' 
"i"" 

'"i*" 

17  
18  
19  
20  
21 

'"i"' 

...... 

i 

2 

22  
23  
24 

1 
2 
3 
....1 
5 
1 
6 
1 
3 

25  
26 

'"i"' 

....... 

27  
28  
29 

30  
31  
32  
33  
34 

1 

'"i" 

1 

35  

4 
2 
2 
2 
2 

1 
1 

2 
1 

i 
'"i" 
'"i" 

36  
37 

"   l'" 

'"l"" 

38  
39  
40 

1 

1 

41  
42  
43  
44  

Totals... 

'"i"' 

8 

118 

1  301 

302 

14 

186 

i 

3 

1 

39 

1,973 

TABLE  LXXIX— (Chicago  Firemen). 

SHOWING  THE  NUMBER  OF  CHICAGO  FIREMEN  IN  ACTIVE  SERVICE,  JANUARY  1,  1916,  CLASSI- 
FIED  IN  GROUPS  ACCORDING  TO  YEARS    OF  SERVICE  AND  AGES  AS  OF  JANUARY  1,  1916. 


Ages 
Inclusive 

YEARS  OF  SERVICE 

Totals 

0-4 
Years 
Inclusive 

5-9 
Years 
Inclusive 

10-14 

Years 
Inclusive 

15-19 

Years 
Inclusive 

20-24 
Years 
Inclusive 

25-29 
Years 
Inclusive 

30-34 
Years 
Inclusive 

35-39 
Years 
Inclusive 

40-44 
Years 
Inclusive 

23-24  
25-29  
on  04 

23 
184 
120 
17 
1 
1 

'"53"" 
305 
231 
65 
10 
2 

237 

384 
311 
234 
191 
100 

10 

'"29"" 
124 
97 
37 
5 
6 

'"12"' 
113 
63 
24 
2 

'"34"' 
88 
57 
11 
1 

35-39 

....... 

34 

75 
37 
5 
1 

40-44  
45-49  
50-54  
55-59  
60-64  
65-68  

1 

27 
36 
8 
2 

'"i"' 

6 
10 
6 

'"l" 

5 

1 

Totals  

346 

667 

298 

214 

191 

153 

74 

23 

7 

1,973 

175 


TABLE  LXXX— (Chicago  Firemen). 

SHOWING  THE  NUMBER  OF  MEN  IN  ACTIVE  SERVICE  WITH  20  YEARS  OR  MORE  OF  SERVICE 
TO  THEIR  CREDIT  ON  JANUARY  1,  1916  CLASSIFIED  INTO  GROUPS  ACCORDING  TO  NUM- 
BER OF  YEARS  MARRIED. 


C3 

3 

2 

d> 

jA 

0 

Is 

3 

Age 

Number  married 
years  inclusive 

of  youngest  wife 
column  A. 

age  age  of  wife 
column  A. 

Number  married 
years  inclusive 

Pi 

age  age  of  wife 
column  B. 

Number  married 
years  inclusive 

of  youngest  wife 
column  C. 

age  age  of  wife 
in  column  C. 

Number  married 
years  inclusive 

a  a 

II 

age  age  of  wife 
column  D. 

Number  married 
years  or  more 

I 

•8 
1 

•3   c 

~O   " 

Percentage  of 
total  number  in 
group  compared 
with  total  number 
of  married  men 
as  given  in 
the  Table. 

A 

a-s 

g.9 

B 

a-s 

|.S 

C 

|.S 

1 

D 

JP 

%'~ 

E 

I8 

F 

S 

42... 

2 

34 

35 

1 

36 

36 

5 

37 

40 

8 

42 

Group  A         3.5 

43  

1 

36 

35 

4 

32 

36 

1 

43 

43 

3 

9 

43 

44 

2 

37 

38 

5 

36 

41 

8 

15 

0 

44 

Group  B         38 

45  

1 

35 

35 

3 

33 

36 

7 

36 

39 

9 

20 

45 

46 

3 

40 

4 

36 

40 

13 

o 

46 

Group  C         66 

47... 

1 

49 

49 

1 

38 

38 

5 

41 

43 

15 

22 

2 

47 

48  

1 

23 

23 

2 

40 

41 

2 

36 

41 

4 

39 

43 

14 

23 

3 

48 

Group  D       16.1 

49... 

1 

36 

36 

1 

36 

36 

2 

37 

41 

6 

37 

42 

19 

29 

2 

49 

50 

3 

35 

39 

9, 

34 

39 

4 

40 

43 

15 

50 

Group  E       70  0 

51 

1 

47 

47 

i 

42 

42 

!•> 

49 

2 

40 

43 

00 

51 

52  
53 

1 

44 

44 

3 

1 

45 

00 

47 
38 

40 

43 

5 

37 
40 

47 
45 

10 

29 

18 

00 

2 

52 

CO 

100.0 

1 

39 

39 

1 

43 

43 

3 

38 

44 

21 

26 

2 

54 

Percentage  of 

55  .. 

3 

41 

45 

18 

21 

1 

55 

total  number  in 

58  
57  

2 
1 

50 
53 

52 
53 

.... 

50  ' 

'so' 

Y 

46' 

'46' 

12 
15 

14 
18 

3 
4 

56 

57 

group  compared 
with  total  number 

58  

15 

15 

1 

58 

of  married  and  un- 

59   

1 

51 

51 

1 

39 

39 

2 

38 

49 

10 

14 

59 

married  men  as 

60... 

1 

55 

55 

7 

8 

3 

60 

given  in  the  Table 

61 

2 

2 

61 

62... 

2 

2 

62 

Group  A         3.1 

63 

1 

39 

39 

7 

g 

1 

63 

~              r>               o    o 

64... 

4 

4 

1 

64 

65 

1 

65 

Group  C          5.8 

66... 

1 

47 

47 

1 

2 

66 

Group  D        14.3 

67  . 

5'? 

53 

1 

9 

67 

68 

3 

3 

68 

69  

69 

Group  F        11.4 

Totals  .... 

14 

15 

26 

64 

278 

397 

51 

100.00 

TABLE  LXXXI— (Chicago  Firemen). 

SHOWING  THE  NUMBER  OF  SERVICE  AND  DISABILITY  PENSIONERS  RECEIVING  LESS  THAN 
$600  AND  MORE  THAN  $900  PER  YEAR  AND  THE  AMOUNTS  THUS  RECEIVED,  CLASSIFIED 
BY  AGES  AS  OF  JANUARY  1,  1916. 


Age 

Number 
receiving 
less  than 
$600 

Total 
amount 
less  than 
$600 

Number 
receiving 
more  than 
$900 

Total 
amount 
more  than 
$900 

Age 

Number 
receiving 
less  than 
1600 

Total 
amount 
less  than 
$600 

Number 
receiving 
more  than 
$900 

Total 
amount 
more  than 
$900 

32  . 

54 

2 

66 

4 

138 

33... 

55 

2 

66 

3 

114 

34  

1 

$72 

56... 

2 

14 

35... 

57 

2 

14 

36  

58  

37  

59 

1 

75 

2 

14 

38... 

1 

62 

60  

4 

138 

39.. 

61 

1 

33 

1 

100 

40  

1 

33 

62 

41  . 

1 

7 

63 

2 

54 

1 

7 

42  

64 

1 

33 

2 

307 

43  

65 

3 

832 

44  

66  .. 

2 

31 

45... 
46  

1 

33 
33 

1 

100 

67  
68... 

"  i  ' 

'"26" 

2 

2,600 

47  
48  

1 

33 

2 

482 

69  
70 

i 
i 

33 
33 

49... 

2 

66 

1 

100 

71... 

2 

482 

50  
51... 

1 

100 

1 

7 

72.  ... 
73 

2 

58 
65 

1 
2 

1,100 
14 

52... 

3 

250 

j 

100 

74  .. 

53  

2 

50 

2 

107 

75  

1 

75 

1 

7 

176 

TABLE  LXXXI— Concluded. 


Age 

Number 
receiving 
less  than 
$600 

Total 
amount 
less  than 
$600 

Number 
receiving 
more  than 
$900 

Total 
amount 
more  than 
$900 

Age 

Number 
receiving 
less  than 
$600 

Total 
amount 
less  than 
$600 

Number 
receiving 
more   than 
$900 

Total 
amount 
more  than 
$900 

76... 

2 

108 

81... 

77.. 

1 

72 

i 

7 

82 

78  
79 

1 

75 

83  

1 

72 

80 

Totals 

35 

$1,  676 

44 

$6,  822 

TABLE  LXXXII— (Chicago  Firemen). 

FINANCIAL  STATEMENT  REGARDING  THE  PENSION  FUND— SHOWING  BY  YEARS  BEGINNING 
WITH  THE  YEAR  1900,  THE  TOTAL  ASSETS  JANUARY  1,  THE  AMOUNTS  OF  RECEIPTS 
AND  DISBURSEMENTS  DURING  THE  YEAR  AND  THE  EXCESS  OF  RECEIPTS  OVER  DIS- 
BURSEMENTS: ALSO  THE  NUMBER  OF  PENSIONERS. 


Total 

Disbursements 

Excess  of 

Pensioners  on  roll  January  1st 

Year 

assets 
January 
1st 

Total 
receipts 

To 
pensioners 

Other 
disburse- 
ments 

Total 

receipts  over 
disburse- 
ments 

Former 
employees 

Widows 

Children 

1900.  . 

$  60,309 

$102,  116 

$  85,081 

$  85,081 

»$  17,035 

1901 

77,  344 

141,801 

91  063 

91,  063 

50,  738 

1902;  ;  ;  ; 

128*,  082 

144!  103 

107!  765 

107,  765 

36,  338 

1903 

164  419 

142,  237 

112,510 

112,510 

29  727 

1904^ 

194',  146 

103^  427 

120,  686 

$  is 

120,  701 

-17,  274 

85 

139 

"    195  " 

1905.... 

176,  872 

108,  083 

128,  581 

320 

128,  901 

-20,  818 

81 

151 

191 

1906... 

156,  054 

210,  875 

135,  353 

330 

135,  683 

75,  192 

87 

166 

194 

1907.  .  . 

231,  247 

208,  671 

148,  546 

403 

148,  949 

59,  722 

91 

174 

194 

1908.... 

290,  969 

181,  149 

181,911 

388 

182,  299 

-1,  150 

95 

186 

188 

1909... 

289,  819 

252,  328 

211,460 

961 

212,421 

39,  907 

133 

194 

177 

1910.... 

329,  727 

223,  221 

230,  725 

896 

231,621 

-8,400 

170 

207 

175 

1911... 

321,326 

225,  934 

251,  182 

909 

252,  091 

-26,  157 

175 

235 

194 

1912.... 

295,  170 

231,021 

268,  387 

970 

269,  357 

-38,  336 

190 

243 

192 

1913.... 

256,  834 

233,  634 

287,  248 

989 

288,  237 

-54,  603 

202 

264 

188 

1914.... 

202,  231 

225,  026 

309.234 

737 

309,  971 

-84,  945 

233 

270 

175 

1915.... 

117,286 

226,  196 

339,911 

470 

340,  381 

-114,  185 

244 

283 

169 

1916.... 

!3,  101 

2184,425 

247 

291 

164 

1  Tax  levy  of  1915  collectable  in  1916,  $200,000  not  included  in  above. 

2  Pensions  for  6  months  of  1916. 

3  The  sign  —  ndicates  excess  of  disbursements  over  receipts. 


177 


TABLE  LXXXIII.-(Chicago  Teachers). 

SHOWING  BY  AGES  AS  OF  JANUARY  1,  1916,  THE  NUMBER  IN  ACTIVE  SERVICE  OR  ON  PENSION 

ON  THAT  DATE. 


Age 

Active  Service 

Pensioners 

Age 

Active  Service 

Pensioners 

Male 

Female 

Service 

Disability 

Male 

Female 

Service 

Disability 

Male 

Female 

Male 

Female 

Male 

Female 

Male 

Female 

20  
21  
92 

Y 
6 
7 
14 
11 
4 
18 
17 
12 
14 
20 
21 
17 
25 
20 
15 
22 
27 
20 
31 
21 
19 
11 
28 
32 
17 
20 
22 
17 
20 
26 
16 
14 
24 

20 
61 
144 

223 
267 
253 
253 
219 
215 
189 
147 
154 
159 
199 
179 
212 
254 
224 
211 
233 
268 
258 
229 
211 
203 
22S 
222 
178 
188 
150 
147 
133 
105 
99 
86 

55  
56...  . 

18 
19 
7 
21 
12 
3 
6 
5 
5 
10 
4 
6 
4 

"5" 
2 

2 

84 
88 
63 
44 
35 
40 
25 
26 
18 
16 
13 
7 
5 
3 

6 
3 
3 
3 
2 
2 
1 
1 

16 
19 
17 
23 
23 
25 
14 
18 
15 
12 
17 
11 
5 
11 
10 
12 
5 
12 
8 
6 

5 
2 
1 
3 
4 
1 
1 

"'i' 

3 

'"2 
2 

'"i 
i 

57  
58  
59... 
60  
61  
62  
63  
64  
65 

23  
24 

•••'••• 

25  
26  
27  
28  
29  
30  
31  
32  
33 

"'i' 

1 
..... 

66  
67  
68  
69  
70  
71  
72 

34  
35 

"'i' 
i 

"'2' 

2 
2 
3 
5 
2 
2 
1 
3 
2 

36  
37  
38  
39  
40  
41  
42  
43  
44  
45  
46  
47  
48  
49  
50  
51  
52  
53  
54  

*. 

73  
74  
75  
76  
77  
78... 
79  
80... 
81  
82 

4 

1 

...., 

"'i' 

i 
i 

2 

3 
9 
5 
1 
4 
1 
1 
4 
3 
..... 

2 

...... 

i 

"'2' 
4 
5 
6 
12 
11 
18 
23 
26 
18 
28 

83  
84... 
85  
86 

'"2 

87  
Totals 

744 

7,010 

22 

467 

i 

54 

178 


TABLE  LXXXIV.— (Chicago  Teachers,  Female). 

SHOWING  THE  NUMBER  AND  SALARIES  OF  FEMALE  TEACHERS  IN  ACTIVE  SERVICE  ON  JANUARY 
1,  1916,  CLASSIFIED  BY  YEARS  OF  SERVICE. 


Years  of  Service 

£ 

II 

«3 

si 

ll 

o_> 

ll 

P 

§.§> 

«?•§ 

ll 

ll 

Oi 

SI 

ll 

Si 

SJ 

1 

Totals 

¥ 

£9 

¥ 

¥ 

O  C 

3 

"7*- 

s5 

1~ 

2  £ 

S~ 

s~ 

1~ 

3 

3° 

0... 

? 

4 

j 

1 

1 

1 

i 

11 

1  

19 

130 

38 

25 

5 

g 

8 

6 

3 

1 

1 

244 

2 

4 

94q 

43 

9q 

17 

11 

g 

14 

5 

g 

384 

3  
4  

98 
26 

211 

26 
44 

32 
19 

11 
1 

16 

7 

12 

4 

5 
10 

8 
6 

4 

7 

i 

424 
350 

5... 

1 

16 

64 

18 

10 

11 

g 

17 

8 

3 

260 

6  
7  
8... 

1 

9 
5 
1 

22 
15 
15 

124 
69 
?6 

36 
57 

12 
13 
33 

8 
11 

8 

3 
13 
18 

2 

7 

9 

10 
10 
2 

5 
10 
10 

2 
5 

8 

234 
215 
228 

9  
10 

.... 

10 
9 

30 

18 

65 
?1 

54 

21 

25 

48 

3 
9 

9 

7 

11 
10 

2 
g 

3 

231 
229 

11  
12  
13 

1 
1 

6 

2 

35 
21 
q 

13 
20 
13 

18 
18 
15 

70 

98 

59 
118 
66 

10 
16 
g 

6 
11 
13 

7 
9 

7 

3 
6 
4 

1 
1 

i 

229 
322 
168 

14  
15 

1 

1 

8 
7 

6 

3 

4 
1? 

30 

53 

85 

13 
15 

5 

7 

10 

2 
4 

134 
185 

16 

1 

4 

11 

11 

54 

130 

17 

g 

2 

13 

2 

255 

17... 
18 

3 

3 

8 
8 

10 

8 

48 
40 

122 
137 

10 

13 

7 

3 

4 

4 

8 

4 
9 

226 
246 

19 

4 

4 

39 

111 

16 

10 

g 

2 

194 

20 

4 

2 

5 

36 

115 

93 

ii 

4 

10 

8 

220 

21 

3 

2 

4 

53 

144 

30 

8 

9 

7 

258 

22  
23...                       

4 

4 
5 

2 
1 

35 

105 
74 

16 
15 

16 
14 

3 

6 

4 

5 

5 

193 
144 

24  

5 

1 

4 

26 

92 

17 

15 

4 

5 

4 

3 

175 

25  
26 

2 
1 

2 
1 

4 
1 

25 

99 

95 
91 

20 
10 

19 

4 
1 

6 
3 

1 

3 

181 
161 

27  
28 

...  . 

1 
1 

1 

17 

98 

85 
54 

11 
q 

14 
13 

2 

5 
5 

10 

5 

3 

149 
119 

29 

q 

54 

11 

14 

3 

9 

4 

97 

30... 
31 

... 

3 
1 

.... 

5 

13 

37 
34 

9 

8 

12 
14 

3 

1 

4 

1 

1 

6 

7 

80 

81 

32  

13 

39 

4 

11 

1 

?, 

g 

76 

33  
34  
35 

1 

2 

1 

9 
3 

7 

26 
12 
13 

4 
3 

7 
8 
g 

"i" 

2 
1 

2 

6 

8 
g 

60 
36 
39 

36 

1 

9, 

9 

4 

7 

3 

26 

37 

14 

4 

25 

38  
39 

1 

1 

10 
5 

3 

7 

1 
1 

2 
1 

8 
1 

33 
10 

40  
41 

1 
9 

6 
g 

1 

\ 

1 

2 
4 

12 
14 

42 

1 

3 

g 

3 

1 

19 

43 

1 

1 

3 

1 

5 

11 

44 

2 

1 

3 

45 

1 

2 

1 

2 

6 

46 

1 

1  . 

1 

3 

47 

1 

2 

3 

48 

2 

2 

49 

1 

1 

'  2 

50 

1 

1 

51 

1 

52 

1 

1 

Totals  

33 

S3Q 

665 

60P 

488 

319 

q9q 

2,165 

38?, 

394 

?5 

167 

91 

104 

7,010 

179 


TABLE  LXXXV— (Chicago  Teachers,  Male). 

SHOWING  THE  NUMBER  AND  SALARIES  OF  MALE  TEACHERS  IN  ACTIVE  SERVICE  ON  JANUARY 
1, 1916,  CLASSIFIED  BY  YEARS  OF  SERVICE. 


Years  of  service 

Less 
than 
$1,000 

$1,000- 
Inclusive 

$1,250- 
$1,499 
Inclusive 

$1,  500- 
$1,  749 
Inclusive 

$1,750- 
$1,999 
Inclusive 

$2,  000- 
$2,499 
Inclusive 

$2,  500- 
$2,  999 
Inclusive 

$3,  000- 
Incl'usive 

$3,  500 
and 
over 

Totals 

o 

2 
6 
6 
6 
3 
1 
2 
1 
5 

'"i"" 

9 
17 
18 
12 
4 
5 

2 
2 

12 
17 
10 
12 
6 
3 
7 
3 

4 
34 
45 
54 
36 
27 
33 
35 
27 
18 
9 
17 
21 
19 
20 
27 
26 
25 
22 
19 
26 
19 
27 
11 
17 
19 
19 
12 
10 
13 
7 
5 
5 
6 
4 
2 

1... 
2  
3 

7 
4 
7 
3 
5 
9 
7 
4 
4 
2 
2 
2 
3 
4 
2 
4 
1 
1 
1 
1 
3 
1 
1 
1 
4 
1 

1 
10 
6 
8 
11 
10 
5 
4 

4 
3 
6 

••y  • 

1 

"i"' 

'"3"' 

4  
5 

3 
3 

8 
6 
6 
2 
4 
6 
4 
8 
6 
9 
13 
5 
5 
4 
1 
5 
3 
2 
3 
3 
1 
2 
2 

6  .. 

'"2"' 

"'i'  " 

7 

8... 

....... 

1 

'"2" 
1 
1 
3 
2 

9 

10 

2 
3 
4 
3 
5 
8 
5 
5 
7 
5 
10 
4 
8 
5 
4 
6 
2 
2 
1 
1 

'"2" 

3 

'  'i'  " 
i 

2 
2 
4 
4 
4 
2 
6 

11 

1 
1 

1 
1 
1 
1 
1 
1 
1 
2 
1 
2 
5 
2 
1 
1 
1 
1 
2 
1 
1 

12  

i 

13 

14 

15  
16 

i 

2 

17... 
18.. 

i 
i 

1 
2 

19... 
20  .. 

'"5"' 
3 
4 
1 
3 
3 
7 
6 
5 
7 
6 
4 
4 
3 
4 
1 

21 

22.. 

23 

24... 

1 

'"i"' 

4 
2 
4 
1 
1 

'"i"' 

25 

26 

27 

28  
29 



2 

30 

31  
32 

1 

....... 

'  "i"' 

33  ... 

1 

i 

34 

35.. 

1 

36 

37... 

'"i" 

1 



3 
2 
3 
1 
1 
5 
....... 

"'i' 

2 

4 
3 
5 
1 
1 
5 

'"l" 

1 
1 
2 

38 

39 

2 

40 

41... 

42.... 

43... 
44  
45 

1 

46..   . 

47 

Totals  

37 

81 

102 

87 

82 

118 

96 

45 

98 

744t 

180 


TABLE  LXXXVI.-CChicago  Tawtefc,  female). 

SHOWING  THE  NUMBER  OF  CHICAGO  FEMALE  TEACHERS  IN  ACTIVE  SERVICE,  JANUARY  1,  1916 
CLASSIFIED  IN  GROUPS  ACCORDING  TO  YEARS  OF  SERVICE  AND  AGES  AS  OF  JANUARY  1 
1910. 


Ages  Inclusive 

Years  of  service 

Totals 

1 
j| 

•1 

{ 

23    a 

'• 

„! 

Si 

J 

si 

•53 

| 

5<    c 

52 
nclusive 

1 

£ 

£ 

"1 

8   1 

O    GO 

£   2 

'! 

*| 

10  ! 

20-24... 

694 
482 
108 
62 
42 
19 
5 
1 

21 
622 
276 
105 
63 
52 
22 
5 
2 

'  '  25 
429 
380 
124 
86 
26 
9 

1 
1 

715 
1,129 
838 
1,134 
1,169 
966 
570 
314 
125 
29 
17 
4 

7,010 

25-29  
30-34  

25 
538 
320 
119 
64 
29 
10 
1 

'  '  49  ' 
559 
210 
114 
40 
13 
4 

'  '  81 
434 
124 

58 
22 
6 
2 

'  '  46  ' 
195 
67 
19 
5 
1 

35-39.  .  . 

'  '  20  ' 
95 
16 

"  "2" 

'  '  io  ' 

40 
4 
4 

40-44  
45-49 

50-54  
55-59 

60-64.  .  . 
65-69 

2 
8 
3 
3 

"  "3" 

70-74 

75-77  
Totals..  

1,413 

1,168 

1,082 

1,106 

990 

707 

333 

133 

59 

16 

3 

TABLE  LXXXVII.-CChicago  Teachers,  Male). 

SHOWING  THE  NUMBER  OF  CHICAGO  MALE  TEACHERS  IN  ACTIVE  SERVICE,  JANUARY  1,  1916 
CLASSIFIED  IN  GROUPS  ACCORDING  TO  YEARS  OF  SERVICE  AND  AGES  AS  OF  JANUARY  1,  1916. 


Years  of  Service 

| 

B 

£ 

> 

B 

B 

> 

B 

B 

B 

Ages  inclusive 

A 

5I 

3    'E 

M 

11 

0,1 

30-34 

irs  inclusi 

35-39 

irs  inclusi 

40-44 

irs  inclusi 

Totals 

B 

8 

S 

8 

8 

8 

I 

V 

S3 

OJ 

>H 

KH 

(N 

H 

>< 

21-24.  .  . 

27 

i 

28 

25-29 

41 

21 

62 

30-34  

48 

38 

8 

3 

97 

35-39  

24 

27 

27 

26 

104 

40-44 

20 

21 

10 

47 

12 

110 

45-49  :    .... 

9 

17 

18 

20 

29 

15 

108 

50-54 

4 

13 

16 

14 

24 

23 

6 

100 

55-59... 

6 

6 

24 

27 

11 

2 

77 

60-64  

1 

2 

6 

5 

5 

8 

2 

29 

65-69 

1 

1 

3 

2 

5 

1 

4 

2 

19 

70-74 

2 

1 

2 

2 

2 

9 

75-78 

1 

1 

Totals  

173 

140 

86 

119 

100 

73 

27 

14 

8 

4 

744 

181 


=  •& 

H  W 

nt 

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•<  H 


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H  O 

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gg 


Pn  O 

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02    Q 


w  a 
w  M 

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02    03 


II 

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333223222 


182 


TABLE  LXXXIX.— (Municipal  Employees,  male  and  female). 

SHOWING    THE    NUMBER   IN   ACTIVE   SERVICE   JANUARY    1,    1916,    CLASSIFIED    IN   GROUPS 
ACCORDING  TO  OCCUPATIONS  AND  AGES  ON  THAT  DATE. 


Age 

Occupations,  male 

'Occupa- 
tions, 
female 

Age 

Occupations,  male 

— 

Occupa- 
tions, 
female 

A 

B 

C 

D 

E 

F 

G 

H 

A 

B 

C 

D 

E 

F 

G 

H 

19... 
20  
21  
22... 
23  
24... 

1 
0 

6 
22 
55 
64 
85 
124 
94 
98 
110 
117 
124 
128 
108 
128 
102 
111 
94 
104 
103 
99 
92 
91 
91 
100 
83 
122 
104 
106 
104 
80 
97 
83 

53  
54 

91 
78 
84 
70 
72 
55 
55 
48 
38 
34 
44 
23 
17 
18 
11 
18 
11 
6 
7 
2 
6 
4 
5 
0 
3 
3 
0 
1 
1 
2 
0 
1 

27 
29 
23 
27 
17 
17 
19 
16 
14 
20 
13 
9 
4 
5 
5 
9 
2 
2 
5 
2 
2 

3 
0 
0 
0 
1 

'i 

0 
0 
1 

2 

5 
3 
3 
3 
3 

1 
3 
0 
1 

7 
7 
5 
4 
3 
2 

2 
1 
2 
0 
0 
0 
0 
0 
0 
1 
1 

6 
3 
4 
3 
5 
5 
3 
5 
3 
2 
1 
4 
0 
1 
0 
1 
1 

2 
5 
7 
16 
11 
11 
13 
21 
21 
17 
21 
9 
12 
14 
14 
20 
16 
18 
15 
17 
20 
18 
13 
17 
10 
22 
8 
10 
11 
13 
2 
6 

'i 

0 
0 
0 
0 
1 
0 
0 
0 
2 
1 
4 
2 
3 
2 
5 
5 
4 
5 
8 
5 
1 
10 
8 
5 
1 
6 
6 

55  
56  
57... 
58  
59  
60  
61  
62  
63  
64  
65.... 
66  
67  
68... 
69  
70  
71... 
72  
73... 
74..  .. 
75  
76..  .. 
77..  .. 
78..  .. 
79..  .. 
80..  .. 
81... 
82  
83  
84  

Totals 

1 
1 

0 
3 
0 

1 
5 
7 
10 
15 
20 
12 
8 
14 
13 
15 
14 
8 
7 
5 
9 
5 
12 
12 
7 
4 
7 
9 
9 
7 
7 

i 

i 
"i' 

2 

'i 

2 
2 

i 

2 
2 
7 
12 
6 
13 
15 
9 
14 
15 
13 
12 
13 
18 
21 
20 
12 
23 
19 
21 
23 
20 
23 
28 
31 
26 
31 
21 
32 
38 

25  
26  
27... 
28  
29  
30  
31  
32... 

1 

.... 

1 

2 

.... 

1 
.... 

Y 
i 

i 
.... 

i 
i 

1 
1 

3 
1 
3 
6 
3 
0 
5 

1 
4 
1 
2 
3 
1 
4 
1 
2 
2 
1 
0 
2 
1 
0 
1 

1 

33  
34  
35... 
36  
37  
38  
39  
40  
41  
42 

1 

1 

0 

1 

0 
0 
1 



1 

43  
44  
45 

46  
47  
22... 
49  
50  
51  
52  



.... 

132 

469 

3,836 

812 

16 

54 

273 

12 

JThe  types  of  occupations  included  are: 

Column  (A).  Such  as  clerks,  stenographers,  bookkeepers,  accountants,  auditors,  draftsmen,  physicians,  health 
officers,  engineers  (technical),  secretaries,  punch  and  machine  operators,  cashiers,  statisticians,  inspectors  (boiler, 
brick,  gas,  paving,  building,  material,  waterpipe,  plumbing,  ventilation,  etc.),  superintendents  (ward,  bridge,  construc- 
tion, machinery,  medical,  etc.) ,  foremen  (carpenter,  repair  shop,  section,  pipe  yards,  etc.) ,  machinists,  carriage  painters 
or  trimmers,  linotype  operators,  meter  testers,  pattern  makers. 

Employees  in  these  classes  pay  the  regular  insurance  premium  rates. 

Column  (B).  Such  as  janitors,  hostlers,  stationery  firemen,  oilers  and  operating  engineers,  brass  workers,  laborers 
(common,  where  no  special  hazard  exists). 

Employees  in  these  classes  are  rated  from  $2.25  to  $6.00  higher  per  $1,000  of  insurance,  varying  with  age  at 
which  insurance  is  taken. 

Column  (C).  Underground  workers. 

Employees  in  this  class  are  rated  from  $9  to  $50  higher  per  $1,000  of  insurance,  varying  with  age  at  which  in- 
surance is  taken. 

Column  (D).  Such  as  electrical  mechanics,  their  helpers  and  foremen,  harbor  policemen. 

Employees  in  these  classes  are  rated  from  $0  to  $2.50  higher  per  $1,000  of  insurance,  without  regard  to  age  at 
which  insurance  is  taken. 

Column  (E).  Such  as  linemen  and  their  foremen  (coming  in  contact  with  live  wires),  telegraph  repairers,  cable 
splicers,  arc  lamp  trimmers  and  repairers,  structural  iron  workers,  bridge  carpenters  and  painters,  window  washers. 

Employees  in  these  classes  are  rated  from  $5.00  to  $7.50  higher  per  $1,000  of  insurance,  without  regard  to  age  at 
which  insurance  is  taken. 

Column  (F).  Such  as  electrical  repairers  on  high  tension  lines,  caisson  workers. 

Employees  in  these  classes  are  not  insurable. 

Column  (G).  Such  as  stenographers,  clerks,  punch  and  machine  operators,  cashiers,  librarians,  nurses,  health 


Employees  in  these  classes  pay  the  regular  insurance  premium  rates. 
Column  (H) .  Such  as  janitresses,  laundresses. 

Emptoyees  in  these  classes  are  rated  from  $2.25  to  $6.00  higher  per  $1,000  of  insurance,  varying  with  age  at  which 
insurance  is  taken. 


183 


TABLE  XC.— (Municipal  Employees,  male). 

SHOWING  THE  NUMBER  AND  SALARIES  OF  EMPLOYEES  IN  ACTIVE  SERVICE  ON  JANUARY  1,  1916, 
CLASSIFIED  BY  YEARS  OF  SERVICE. 


S 

flj 

o 

2 

« 

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S 

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I 

s 

OS 

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of 
bervice 

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3-1 

21 

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S! 

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2j 

21 

a 

si 

M 

i  B 

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ta 

§  a 

S  = 

^ 

a 

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o£ 

I 

~ 

<£ 

* 

1 

3 

U 

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£ 

3 

£"" 

S 

S 

a 

^ 

51 

S 

ai 

I 

0  
1 

3 

4 

3 
14 

3 

87 

38 

3 

77 

36 

"q' 

q 

5 

1 
37 

i 
11 

4 

5 

"2" 

16 

391 

2  
3  
4  
5  
6 

3 

1 
i 

3 
.... 

12 
4 
1 
1 

19 

9 
1 
4 

94 
41 
50 

57 
17 

155 

59 
28 
27 

8 

88 
36 
35 
46 
17 

7 
2 
5 

8 

97 
45 
24 
57 
37 

16 
49 
37 
38 
16 

13 
4 
5 
10 

7 

106 
51 
68 
32 
43 

57 
22 
17 
11 
10 

10 
25 
15 
6 
4 

2 
2 
3 

1 
1 

2 
1 
1 

"i" 

i 
"2" 

684 
352 
292 
303 
163 

7  
8 

1 
1 

2 
1 

14 

10 

99 

13 
14 

1 
1 

64 

84 

18 

?7 

2 
6 

46 
50 

19 
95 

7 
14 

"3" 

i 

2 
3 

200 

272 

9  
10 

1 
1 

1 

23 
10 

30 
13 

22 
11 

2 
1 

88 

34 
?0 

9 
11 

94 

68 

45 
40 

22 
16 

2 
4 

1 
1 

2 

1 

377 
257 

11  
12 

1 

1 

1 

9 

5 

1 

11 

9 
6 

i 

32 

16 

1 
3 

59 
34 

23 

17 
3 

3 

1 

1 

'  Y 

174 
120 

13  
14 

2 
1 

3 
3 

6 
7 

8 
4 

2 

12 
13 

8 
4 

... 

17 
8 

6 
6 

4 
2 

'i' 

i 

i 

69 
52 

15  
16.. 

1 

"3" 

*2 

3 

8 

8 
1?, 

5 

7 

i 

15 

34 

4 

8 

"2 

19 
35 

8 
14 

8 
6 

1 
1 

3 

4 

75 
139 

17  

1 

7 

6 

9 

8 

10 

3 

15 

11 

3 

i 

100 

18  
19 

5 
3 

12 

38 

17 

8 

2 

62 

37 

7 
3 

63 
19 

39 

98 

38 
22 

7 
3 

3 
2 

2 

2 

4 

332 
149 

20  
21 

...  . 

2 
9 

3 

6 
10 

4 
3 

1 
1 

4 

4 
q 

1 

17 

90 

•8 
q 

7 
18 

57 
92 

22  
23 

4 
4 

3 
5 

7 
8 

4 

1 

8 

8 

7 
5 

15 
19 

8 
4 

4 

7 

4 

i 

1 

59 
62 

24  
25 

1 

1 
1 

1 

5 
4 

7 
3 

... 

8 

5 
fl 

i 

9 

8 

4 

5 

1 

i 

... 

34 

37 

26  
27. 

i 

1 

4 
6 

1 

1 

5 

3 

5 

4 

i 

2 

6 
6 

4 

Y 

i 

i 

... 

30 

32 

28 

1 

9 

1 

0 

14 

29 

1 

1 

2 

3 

4 

11 

30 

1 

g 

1 

4 

1 

13 

31... 

1 

1 

J 

1 

1 

7 

32 

1 

i 

1 

1 

1 

7 

33... 

2 

2 

34 

9 

9 

1 

5 

35  
36 

i 

"? 

... 

1 

1 

i 

2 
5 

37  
38 

i 

...  . 

1 

1 
2 

39  
40 

1 

1 

1 

1 

4 

41  
42. 

... 

... 

i 

i 

2 
2 

43  
44... 

1 

... 

1 

•;• 

2 

45  

1 

1 

2 

46... 

47  . 

48  .. 

49 

50.... 

51 

• 

1 

Totals... 

3 

3 

11 

33 

92 

484 

555 

465 

41 

874 

440 

100 

994 

498 

291 

46 

27 

22 

24 

5.003 

184 


TABLE  XCI.— (Municipal  Employees,  female). 

SHOWING  THE  NUMBER  AND  SALARIES  OF  EMPLOYEES  IN  ACTIVE  SERVICE  ON  JANUARY 
1,  1916,  CLASSIFIED  BY  YEARS  OF  SERVICE. 


Years 
of 
Service 

$300- 
$399 
Inclusive 

$400- 
$499 
Inclusive 

$500- 
$599 
Inclusive 

$600- 
$699 
Inclusive 

$700- 
$799 
Inclusive 

$800- 
$899 
Inclusive 

$900- 
$999 
Inclusive 

$1,000- 
$1,249 
Inclusive 

$1,250- 

$1,499 
Inclusive 

$1,500 
and 
over 

Totals 

0  

1 

'"e" 

7 
4 
11 
4 
1 

'"4" 

2 
....... 

'"12" 
12 
4 
4 
31 
1 
3 
1 
2 
4 
1 
2 

2 
12 
19 
2 
3 
1 
1 

'"37  " 
42 
15 
4 
4 
11 
3 
2 
7 
1 
1 
1 

'"5" 
2 
13 
15 
18 
15 
13 
10 
2 
3 

2 
4 
1 
1 
3 
4 
2 
4 
1 
1 
1 

1 

7 
2 

'"2" 
2 
1 

5 
98 
94 
46 
49 
69 
31 
25 
23 
19 
11 
3 
4 
2 
11 
21 
19 
7 
12 
8 
11 
10 
6 
5 
1 
2 
2 
3 

2'.'.'. 
3  
4  
5  
6  
7... 
8  

"T 

i 

7 
3 
2 

"3" 

8 
5 
3 
8 
4 

'"i" 

3 
3 
1 

9  
10  
11  
12.... 
13  
14  

'"i 

1 
5 
10 
3 
2 

...... 

1 
3 
2 
1 
3 
1 
1 
...... 

3 

2 

2 
5 

'">" 

'"3" 
...... 

15  
16  

11 
2 
2 
1 
2 
1 
1 
1 

2 
1 
3 
3 
1 
1 

17  

18  

i 

i 
i 

2 

1 

"  i 

19  
20... 

'"i" 
'"i" 

1 
2 
3 

1 

1 
2 
2 

21  
22  

1 
1 

23  

24  

i 

25... 

1 

2 
1 

26  

27... 

2 

28  

29  

1 

1 

2 

30  
31  
32... 

33  
34  
35  
36  

Totals 

1 

1 

...... 

1 

2 

23 

56 

63 

90 

43 

145 

124 

26 

29 

601 

TABLE  XCIL— (Municipal  Employees,  Male  and  Female). 

SHOWING  THE  NUMBER  OF  EMPLOYEES  BOTH  MALE  AND  FEMALE  IN  ACTIVE  SERVICE  JAN- 
UARY 1,  1916,  CLASSIFIED  IN  GROUPS  ACCORDING  TO  YEARS  OF  SERVICE  AND  AGES  AS  OF 
JANUARY  1,  1916. 


Ages  inclusive 

Years  of  Service 

Totals 

0-4 
Years  inclusive 

I 

"I 

10-14 

Years  inclusive 

15-19 

Years  inclusive 

20-24 
Years  inclusive 

25-29 
Years  inclusive 

30-34 
Years  inclusive 

35-39 
Years  inclusive 

40-44 
Years  inclusive 

45-49 
Years  inclusive 

50-51 
Years  inclusive 

-19  
20-24  
25-29... 
30-34  
35-39 

1 

156 
548 
444 
327 
224 
164 
96 
51 
14 
2 

110 
300 
288 
255 
217 
137 
92 
48 
6 
2 

1 
183 
664 
828 
774 
750 
797 
667 
489 
283 
106 
40 
17 
5 

6 
79 
131 
124 
135 
108 
71 
38 
8 
2 
1 

5 
26 
115 
204 
204 
152 
85 
40 
22 
7 
2 

2 
30 
60 
80 
75 
53 
29 
5 
3 

2 
17 
38 
28 
32 
10 
3 
3 

40-44... 
45-49  
50-54  
55-59... 
60-64  
65-69 

3 
17 
6 
4 
2 
2 
1 

1 
2 
6 
2 
3 
1 

..... 

3 
1 

"'2' 

..... 

70-74... 

75-79  
80-84  

Totals. 

2,027 

1,482 

703 

862 

337 

133 

35 

15 

7 

2 

1 

5,604 

185 


ni 

WE 
H  Q 


"g     £  a 

2    Sa 


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III 


o  pa 


gg 


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HP 


I? 


S-s.1 


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8£23! 

~f  CM  >O  O  < 
OOOcO  i-i  < 


sisll 


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-*      cr!  -«f  IM 


•  CO  C^  t^-  O  ^H 


22222 

CO  CO  CO  CO  CO 

Illll 

32223 


-"  e  ca  e 


186 


TABLE  XCIV.— (Illinois  State  Teachers,  Male  and  Female). 
SHOWING  BY   AGES  AS   OF   JANUARY   1,  1916,  THE  NUMBER  OF  PUBLIC  SCHOOL  TEACHERS  IN 


Age 

Number  from 
data  of  94 
counties 

Calculated 
number  in 
State 

Age 

Number  from 
data  of  94 
counties 

Calculated 
number  in 
State 

17... 

24 

30 

50 

135 

167 

18... 

202 

249 

51 

91 

112 

19  

1,153 

1,422 

52 

89 

110 

20  

1,767 

2,179 

53... 

85 

105 

21 

1  883 

2  322 

54 

82 

101 

22... 

1,825 

2,250 

55 

91 

112 

23  

1,646 

2,030 

56... 

83 

102 

24  

1,408 

1,736 

57. 

73 

90 

25  

1,193 

1,471 

58... 

54 

67 

26  

27... 

1,105 
874 

1,363 
1,078 

59  
60 

30 
28 

37 
35 

28  

766 

945 

61... 

27 

33 

29 

664 

819 

62 

27 

33 

30... 

589 

726 

63 

23 

28 

31..   . 

528 

651 

64 

13 

16 

32... 

481 

593 

65 

13 

16 

33... 

416 

513 

66 

11 

14 

34 

319 

393 

67 

8 

10 

35... 

335 

413 

68 

12 

15 

36... 

306 

377 

69 

2 

2 

37... 
38... 

275 
260 

339 
320 

70  
71 

4 
1 

5 
1 

39 

240 

296 

72 

1 

1 

40....    :  
41... 

241 

238 

297 
294 

73  

74 

1 
2 

1 

2 

42 

206 

254 

75 

43 

174 

215 

76 

44 

172 

•      212 

77 

1 

1 

45 

196 

242 

78 

46  

186 

229 

79 

1 

1 

47 

148 

183 

48  
49 

142 
135 

175 
167 

Totals 

21,  085 

26,  000 

TABLE  XCV.— (Illinois  State  Teachers,  Male  and  Female). 

SHOWING  THE  NUMBER  AND  SALARIES  OF  PUBLIC  SCHOOL  TEACHERS  IN  THE  STATE  OF 
ILLINOIS  OUTSIDE  OF  THE  CITIES  OF  CHICAGO  AND  PEORIA  IN  ACTIVE  SERVICE  ON 
JANUARY  1,  1916,  CLASSIFIED  BY  YEARS  OF  SERVICE.  (Basis  of  21,035  teachers). 


Years  of 
service 

.              > 

gg'| 
SS1 

oil 

S»«*>  g 

i«l 
**      c 

ID 

S§1 

ls| 

s^      a 

io>-§ 
t&      c 

girl 
**3 

o 

~sl 

-  »•£ 
«&     e 

i  a>£ 

§31 

£«»£ 

i  «£ 

*3J 

s«rs 

3 

S3 

| 

i« 

!l 

Totals 

I1... 
2  
3 

..  52 
..   13 
9 

535 

283 
135 

928 
803 
537 

1,038 
1,149 
1,011 

286 
345 
341 

153 
151 
158 

79 
100 
99 

49 
55 
40 

30 
36 
32 

34 
36 
45 

5 
3 

8 

3 

1 
2 

2 
4 

4 

3,194 
2,979 
2,421 

4... 
5  
6  
7...... 
8  
9... 
10  
11  
12 

.     2 
..     2 
.     2 
..     2 

2 

81 
67 
35 
20 
20 
15 
13 
13 
7 

345 
233 
134 
123 
84 
65 
51 
28 
33 

731 
598 
411 
301 
260 
204 
162 
123 
108 

293 
304 
217 
221 
156 
133 
112 
99 
98 

149 
184 
125 
114 
124 
98 
93 
71 
68 

84 
75 
73 
69 
76 
46 
52 
49 
48 

57 
46 
63 
50 
49 
37 
45 
45 
34 

43 
33 
26 
24 
20 
23 
25 
20 
12 

55 
53 
44 
35 
45 
34 
30 
25 
36 

13 
16 
11 
11 
27 
16 
10 
14 
13 

7 
11 
9 
9 
6 
16 
11 
10 
6 

2 
2 
3 
4 

'"e 
....„ 

1,862 
1,624 
1  153 
983 
867 
887 
610 
497 
472 

13  
14  
15... 
16... 
17  
18... 
19... 

.'."l 
.'.     1 

3 
2 
3 
2 

25 
21 
22 
15 
12 
12 
9 

82 
62 
63 
48 
48 
39 
27 

57 
55 
54 
54 
51 
44 
40 

59 
41 
48 
51 
42 
22 
35 

38 
41 
34 
28 
16 
18 
22 

37 
29 
23 
20 
24 
17 
20 

10 
18 
17 
15 
10 
12 
18 

18 
19 
20 
14 
16 
13 
16 

11 
9 
10 
5 
5 
9 
3 

10 
8 
5 
8 
6 
12 
12 

4 
3 
8 
9 
3 
1 
5 

352 
309 
306 
271 
235 
200 
207 

20  
21  
22... 
23  
24  
25  

..     1 

.'."i 
!!"i 

4 
4 
0 
1 
3 

12 
5 
9 
6 
9 
9 

44 
32 
26 
32 
32 
42 

33 

28 
22 
22 
19 
25 

29 
35 
23 
28 
30 
35 

11 
14 
12 
12 
14 
16 

17 
17 
10 
13 
14 
27 

15 
12 
19 
12 

8 
17 

11 

18 
11 
18 

8 
18 

3 
2 
4 
..„. 

7 

6 
5 
9 
4 
8 
6 

9 
3 
8 
6 
4 
3 

195 
175 
154 
154 
153 
206 

iThis  includes  all  those  having  one  year  and  under. 


187 


TABLE  XCV.— Concluded. 


Years  of 
service 

ill 

*"s 

i    .> 

**      c 

!*J 

**l 
S*| 

> 

£2| 

s>  100  - 
$699 
Inclusive 

,  _£ 
''•'      = 

I 

££j 

'«£ 

1-| 

i  a? 

8*1 

«r7'! 

m 

a*3 

w 

2*1 

1* 
*1 

Totals 

26  

2 

3 

7 

.1.8 
12 

19 
18 

17 
13 

13 
11 

15 
9 

9 
5 

9 
8 

5 
3 

4 
5 

2 

116 

93 

28  
29  
30  
31  
32... 
33  
34... 
35 

'    i 
i 

2 

"   1 

..„. 

5 

2 
3 

12 
14 

17 

3 
12 
1 
7 
5 

8 
12 
17 
10 

7 
6 
5 

g 

10 
14 

12 
9 
7 
9 
5 
g 

6 
14 

8 
5 

s 

4 

8 

7 

7 
3 
11 
2 
4 
2 
1 
4 

3 
5 
6 
4 
3 
2 
2 

10 
4 
4 
11 

8 
8 
5 
5 

3 

"Y 

3 

2 

'    i 

..... 

4 
2 
3 

3 
1 

1 

••'4' 
2 
2 
4 

03 
79 
87 
50 
59 
38 
40 
45 

36... 

a?  

38  
39 

1 

1 
3 

3 
2 
1 

7 
..... 

7 
3 
4 
3 

2 
5 
4 

2 

1 

2 
2 
2 

2 
4 
1 
1 

1 
2 
2 
1 

2 

2 
1 

i 
i 

28 
23 
17 
11 

40  
41  
42 

1 

..  „  . 

"'i' 
i 

3 

4 
1 
2 

7 
3 
1 

3 

2 

2 
2 

2 

1 

1 
1 

i 

i 

2 

24 
11 
9 

43 

i 

1 

1 

1 

4 

44 

1 

2 

2 

1 

6 

45  
46 

'    i 

1 
1 

1 

1 

3 
2 

47 

i 

1 

1 

1 

4 

48 

1 

1 

2 

49.. 
50 

.  .  „  . 

i 

0 
2 

51 

52 

i 

1 

2 

53.. 

0 

54 

0 

55  

1 

1 

Totals.. 

91 

1,258 

3,563 

6,785 

3,236 

2,102 

1,230 

912 

561 

753 

239 

229 

126 

21,  085 

TABLE  XCVI.— (Illinois  State  Teachers,  male  and  female) . 

SHOWING  THE  NUMBER  AND  SALARIES  OF  TEACHERS  IN  ACTIVE  SERVICE  ON  JANUARY  1,  1916, 
WHO  HAVE  25  YEARS  OR  MORE  SERVICE  TO  THEIR  CREDIT,  AND  ARE  50  YEARS.  OR  MORE, 
OF  AGE  ON  THAT  DATE;  CLASSIFIED  BY  AGES  AS  OF  SAME  DATE  (BASIS  OF  21,085  TEACHERS). 


g 

e 

5T 

5T 

'       > 

sr 

sr 

E 

5T 

•       ° 

~i  ST 

Age 

gg'l 

s»1 

gs-g 
a»| 

§l'i 
»»1 

s|1 

SSo 

SS'S 

»»l 

H| 

£§'3 

u&1 

§srg 
*1 

ii| 

gs-g 

sal 

8S'| 

sal 

*"Si 

g-a  fe 
g§§ 

Totals 

50  
51 

1 

2 
3 

11 

7 

17 

6 

12 
10 

10 
10 

9 
6 

6 
1 

4 

7 

3 
3 

7 
5 

82 

58 

52  
53 

1 

3 

2 

11 

6 

5 
13 

7 
7 

6 

7 

3 

7 

2 
2 

5 
5 

3 

2 

4 

3 

53 
51 

54  
55 

i 

3 
1 

6 
14 

4 
7 

9 
9 

7 
8 

4 
3 

3 
3 

5 

7 

3 
1 

3 
5 

4 

4 

51 
63 

56  

57 

2 

"  i" 

13 
11 

7 
9 

14 
9 

14 
5 

6 
5 

2 

7 

5 
6 

3 
1 

3 

4 

i 

69 
59 

58  

2 

7 

3 

11 

4 

5 

6 

5 

1 

2 

46 

59  
60  

2 
1 

4 
1 

5 
3 

3 
9 

2 
2 

3 
3 

1 
1 

3 
2 

1 

2 

1 

27 
22 

61  
62  
63  
64 

"  i 

1 
1 

i 

1 
2 

1 

'  '  4  ' 
3 
2 

4 
4 
3 
2 

4 

3 
3 
1 

1 

1 
3 
1 

1 

1 
3 
1 

1 
3 

2 

3 
1 

1 

1 

"2" 

3 

20 
23 
18 
11 

65  
66 

2 
1 

1 
1 

2 
2 

2 
2 

1 
1 

"  i  " 

1 

i 

10 
10 

67  

2 

1 

1 

7 

68  
69  

"  i" 

1 

2 

2 

•  Y 

1 

1 

1 

1 

9 
2 

70 

1 

1 

1 

1 

4 

71 

72  . 

1 

1 

73 

i 

1 

74.  .. 

1 

1 

75 

76... 

77.. 

1 

1 

Totals.. 

3 

7 

31 

104 

99 

117 

86 

64 

43 

63 

23 

39 

20 

699 

—13  PL 


188 


w  3 


§31 


ps 
iH 


« 


C<l  S      • 


•rf  CD 

Si 


S3 


la! 


189 


TABLE  XCVIIL— (Park  Policemen,  Chicago). 
SHOWING  BY  AGES  AS  OF  JANUARY  1,  1916.  THE  NUMBER  IN  ACTIVE  SERVICE  ON  THAT  DATE 


Age 

Lincoln  Park 

South  Park 

West  Park 

Age 

Lincoln  Park 

South  Park 

West  Park 

25     . 

1 

2 

51... 

7 

2 

26... 
27  
28  
29 

1 
3 
2 
3 

6 
6 
4 
2 

2 

7 
4 
7 

52  
53  
54  
55 

3 

2 

2 
6 
3 
3 

4 

6 
3 

30.. 
31  
32  
33... 

2 
2 
2 

7 
3 
5 
11 

4 
2 
3 
3 

56  
57  
58  
59  

2 

'   i  '" 

2 
5 
2 
1 

2 
3 
3 
1 

34...    . 
35 

5 

5 
4 

4 
1 

60  
61 

'"2  

2 

36...    . 

1 

4 

4 

62  

1 

37 

2 

6 

3 

63 

1 

38... 

3 

7 

1 

64  

1 

39     . 

1 

6 

5 

65 

40  

41     . 

1 
7 

8 
8 

5 

8 

66  

2 

2 

42 

2 

7 

3 

43  

2 

11 

4 

76 

j 

44 

1 

10 

4 

45  

1 

6 

2 

46  

2 

3 

3 

47  

1 

7 

3 

48  
49 

2 
1 

5 
5 

2 
5 

50  

2 

5 

4 

Totals 

62 

187 

124 

190 


& 

g's 

1"S 

S.*o 

«~  ea'C 

2=*£ 


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CO  Cs  OS  *O  OS 


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01  i-H  t^  CO 


From 
policem 


(^I^^H^H^H  00-^OOt 

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OOCOCOOS!M  >OOOC 

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191 


TABLE  C.— (Chicago  Public  School  Employees,  male  and  female). 
SHOWING  BY  AGES  AS  OF  JANUARY  1,  1916,  THE  NUMBER  IN  ACTIVE  SERVICE  ON  THAT  DATE. 


4 

1 

£ 

£ 

a 

| 

£ 

1 

•3 

£ 

I 

1 

•3 
fa 

4 

1 

! 

£ 

3 

| 

fa 

20  .... 
11... 
22  .... 
2T  . 
24... 
25  ... 
26... 
27 

3 
4 
6 
5 

7 

i 

i 

2 

30.  ... 
31... 
32.... 
33.... 
34.... 
35.... 
36.... 
37 

12 
6 
6 
10 
12 
9 
7 
5 

2 
1 
4 

"2' 
2 
1 

40  ... 
41.... 
42.... 
43  .... 
44.... 
45.... 
46.... 
47 

10 
5 
9 
5 
9 
12 
9 
ft 

'i 

i 
i 
i 
i 

i 

50... 
51.... 
52.... 
53.... 
54.... 
55.... 
56... 
57  ... 

9 
11 
8 
11 
9 
8 
14 
18 

3 

2 
2 

"2' 

60... 
61.... 
62.... 
63.... 
64.... 
65.... 
66.... 
67.... 

4 
4 
5 
8 
5 
4 
3 
3 

'2' 
i 

70... 
71..    . 

72.. 
73..    . 
74..    . 

4 

2 

"2' 
1 

28.... 
29.... 

3 
11 

"2" 

38.  ... 
39.... 

4 
9 

.... 

48.... 
49.... 

6 
12 

2 

2 

58.... 
59.... 

6 
13 

'3 

68.... 
69.... 

6 

1 

Totals. 

361 

46 

TABLE  CI.— (Chicago  Public  School  Employees,  male  and  female). 
SHOWING  BY  AGES  AS  OF  JANUARY  1,  1916,  THE  NUMBER  ON  PENSION  ON  THAT  DATE.  . 


Age 

Service  Pensioners 

Disability  Pensioners 

Age 

Service  Pensioners 

Disability  Pensioners 

Male 

Female 

Male 

Female 

Male 

Female 

Male 

Female 

41  
18  
19 

1 
1 

70 

1 

2 
1 

2 
2 
1 
2 

'"i"' 

"  i  "" 
i 

1 

71  

72 

'"i"' 
'"i"" 

....... 

73  
74 

50  

51  
>2  

1 

75  
76 

i  '  ' 

"  i 

•3  .. 

1 

77  
78... 
79  
80... 
81  
82  
83  

»4  
55. 

1 

56  
>7.. 

>8  
59  
50  
51  
52.... 
53  
54  
55  
J6  
M  
58  
59  

1 
1 

'"i"' 
i 

1 
1 

'"{'" 

....... 

i 
i 

i 

Totals 

25 

6 

1 

3 

iz;1^ 

i! 
m 

&& 
<z,c± 


£  BE 

1    og 

o     ^W 

8P   ^g 

•a     P^g 

i  Si 


oQ 

^Q 
S^; 

i 

Q« 


PENSION  F 
MOUNTS  OF  P 
NSIONERS. 


a|s 

o^^; 


So^ 

SI- 

^Si2 

s§§ 

a§l 

ow« 

i 


tilii 

^  0.0 


111 

W  II 


^ 


From  salary 
deductions 


•a -a 

&* 


^eoTi<ooo 


i-i  ^  •*"  CV  -^T  O5  TH  CO  O  O»  t-^ 


-*PO'-H 


c<)ioiOi—  icsir— 


i-J  t>T  «O  CO  CO  W  O  O  CO  ^"  >O 


••••  w 


- 

<  •<  O 


Number  of 
pensioners 

l|'| 

D 

-***- 

Excess  of 

receipts  over 
disbursements 

™3» 

'§ 

I 

ill" 

iirsements  during  p 

iQther 
disbursements 

i  i'S 

Q 

To  pensioners 

Is; 

g 

'"o 

.2 

a, 

1 

SB 

1 

5 

a 

g 

"2 

~H  •«*•**!  OO  O» 

§ 

1 

eceipts  during  peri 

j 

c^  o  ic  o  oo 

aeing  included  in  d 

a 

I 

<M  .-H  00  <M  ^H 
CO-H-H0500 

ung  and  discounts 

I 

"8 

•11 

•  -^t*  CO  O5  CO  C<I 

I 

I 

Is 

:    "    "    -* 

1 

:::::: 

« 

j 

|ii  i 

•8 

! 

S<35  O5O5C6O 

» 

^TCOOCOOOOOO 

H 

193 


TABLE  CIV— (House  of  Correction  Employees,  male  and  female). 
SHOWING  BY  AGES  AS  OF  JANUARY  1,  1916,  THE  NUMBER  IN  ACTIVE  SERVICE  ON  THAT  DATE. 


a 

1 

£ 

4 

| 

3 

£ 

4 

1 

Cm 

1 

| 

£ 

i 

1 

c£ 

1 

-i 

£ 

•>n 

30 

1 

i 

40 

7 

r)0 

2 

1 

fiO 

1 

70 

21 
22 

31 
T> 

4 
2 

i 

41 
•V> 

2 
4 

51 

V> 

2 
1 

'"i" 

01 
fV> 

2 
1 

71.... 
72 

i 

•>3 

S3 

1 

2 

43 

3 

53 

1 

03 

73  .... 

i 

?4 

34 

2 

44 

1 

54 

3 

04 

j 

74 

25 

•>6 

'"2" 

1 

35 
36 

2 
2 

"  i 

45 

40 

6 
2 

1 

55 
56 

i 

65 
00 

75.... 

^7 

37 

4 

i 

47 

1 

1 

57 

2 

07 

1 

°8 

g 

2 

38 

4 

18 

1 

58 

2 

G8 

?9 

3 

30 

4 

49 

1 

1 

50 

1 

09 

Totals. 

88 

16 

TABLE  CV— (Chicago  Public  Library  Employees). 
SHOWING  BY  AGES  AS  OF  JANUARY  1,  1916  THE  NUMBER  IN  ACTIVE  SERVICE  ON  THAT  DATE. 


*  3 

m 

1 

1 

to 

a 

1 

.2 
£ 

4 

Jt 

OS 

£ 

P£ 

4 

-1 

1 

£ 

I 

| 

4 

£ 

17   9 

30 

3 

8 

40 

2 

3 

50 

j 

i 

00 

3 

70 

18  14 

31 

5 

41 

5 

51 

3 

2 

01 

1 

71.  . 

19   19 
20   7 

l 

7 

32 
33 

3 

2 

5 
3 

42 
43 

3 
1 

3 
3 

52 
53 

3 

2 
1 

62 
03 

72  .... 
73  ... 

1 

21   6 
22   2 

12 
11 

34 
35 

...... 

1 

7 

44 
45 

3 
3 

2 
4 

54 

55 

1 
3 

4 

2 

64 
05 

2 

74.... 
75  . 

1 



23  

11 

30 

1 

2 

40 

2 

1 

56 

1 

00 

24   4 

5 

37 

2 

4 

47 

1 

1 

57 

1 

07 

1 

25   4 
26   3 

8 
8 

38 
39 

1 
2 

3 
1 

48 
49 

3 
1 

1 

58 
59 

1 
1 

2 

68 
09 

1 
1 

27   2 

4 

28   2 

5 

29  

7 



Totals 

134 

156 

194 


o  o 


CJ        pQ 


3-1 


iQt 

d 
rse 


at 
ts 


or 
be 


•  «-H  (M  c«5  CO  •*  ifi  l~-  CO  t 


10  cq  <o  oo  co  to  co  t--  03  co 

COOCOOOOlOCOOCOe^ 

l>-O'*HO^»-HOCO''t<CO 
<N  <N  O  C^l  O  t-  O>  00  00  O 


TH"  ^H  <N"  <M"  co"  co"  TJ<"  • 


CQ*—  fi—  fCOi 
tO  t-  <M  (M 

i-H         CO  IO 


:S8   :   JSS   ;S 

•  OS  O      •       •  IO  O      •  C<l 
-CO  "3      •      ••*  lO      •  •* 


^  ^H  ^H  (M  CO  CO  CO 


O  CO  OO  OO  (M  1C 

foS  »c  oo  oo 


i-ll-H  T-H  ^-1  rt  i-l  <M        • 


^OOOOOOOOOO 


195 


TABLE  CVI1— (Peoria  Teachers,  male  and  female). 
SHOWING  BY  AGES  AS  OF  JANUARY  1,  1916,  THE  NUMBER  IN  ACTIVE  SERVICE  ON  THAT  DATE  * 


Age 

Number 

Age 

Number 

Age 

Number 

Age 

Number 

Age 

Number 

Age 

Number 

20... 
21.... 
22  ... 
23... 
24..  . 
25... 
26.... 

2 
14 
15 
24 
16 
15 
8 

30... 
31... 
32... 
33... 
34... 
35... 
36... 

12 
14 
10 
11 

9 
8 

7 

40... 
41... 
42... 
43... 
44... 
45... 
46... 

11 

9 
6 
13 
7 
4 
10 

50... 
51... 
52... 
53... 
54... 
55... 
56... 

5 
3 
5 
4 
6 
5 
1 

60... 
61... 
62... 
63... 
64... 
65... 
66... 

..«..., 

1 

70... 
71  
72  
73  
74  
75  

1 

1 

"  i 

27.... 

14 

37... 

14 

47... 

9 

57... 

2 

67... 

I 

28 

15 

38 

3 

48 

g 

58 

4 

68 

1 

29.... 

13 

39... 

8 

49... 

8 

59... 

2 

69... 

1 

Total 

*367 

>f  the  437  teachers,  the  remainder  failed  to  answer. 

TABLE  CVTII—  (Peoria  Teachers). 
FINANCIAL  STATEMENT  REGARDING  THE  PENSION  FUND— SHOWING  FOR  VARIOUS  PERIODS  BE- 
GINNING SEPTEMBER  25,  1911,  THE  TOTAL  ASSETS  AT  THE  BEGINNING  OF  EACH  PERIOD, 
THE  AMOUNTS  OF  RECEIPTS  AND  DISBURSEMENTS  DURING    THE    PERIOD   AND    THE    EX- 
CESS OF  RECEIPTS  OVER  DISBURSEMENTS;  ALSO  THE  NUMBER  OF  PENSIONERS. 


Period 

Number 
of  pen- 
sioners 
on  roll 
at  end  of 
period 

Total 
assets  at 
beginning 
of  period 

Receipts  during  period 

Disbursements  during  period 

Excess  of 
receipts 
over  dis- 
bursements 

From 
teachers 

'Other 
sources 

Total 

To 
pension- 
ers 

'Other 
than  to 
pension- 
ers 

Total 

Sept.  25,  1911— 
1    Aug.  1,  1912... 
Aug.     1,      1912- 
Aug.  1,  1913... 
Aug.  1,  1913- 
Aug.  1,  1914... 
Aug.  1,  1914- 
Aug.  1,  1915... 
Aug.  1,  1915- 
Feb.  4,  1916... 
Feb.  4,  1916... 

$5,429  50 
5,  718  00 
7,  715  42 
6,317  00 
2,  708  00 

$      88  25 
225  17 
2,397  12 
4,509  09 
443  47 

$  5,517  75 
5,943  17 
10,  112  54 
10,  826  09 
3,  151  47 

$5,517  75 
5,711  36 
9,266  15 
9,  903  31 
2,  797  72 

3 

3 
3 

$  5,  517  75 
11,229  11 
20,495  26 

30,  398  57 
33,  196  29 

$440  00 
600  00 
240  00 

$231  81 
406  39 
322  78 
113  75 

$231  81 
846  39 
922  78 
353  75 

'The  securities  are  carried  at  face  value  the  premiums  and  discounts  being  included  in  disbursements  and  re- 
ceipts respectively. 

TABLE  CIX— (Peoria  Firemen). 
FINANCIAL  STATEMENT  REGARDING  THE  PENSION  FUND— SHOWING  FOR  VARIOUS  PERIODS  BE- 
GINNING JANUARY  1,   1904  THE  TOTAL  ASSETS  AT  THE  BEGINNING  OF  EACH  PERIOD,  THE 
AMOUNTS  OF  RECEIPTS  AND  DISBURSEMENTS  DURING  THE  PERIOD  AND  THE  EXCESS   OF 
RECEIPTS  OVER  DISBURSEMENTS;  ALSO  THE  NUMBER  OF  PENSIONERS. 


Period 

Number 
of  pen- 
sioners 
on  roll 
at  end  of 
period 

Total 
assets  at 
beginning 
of  period 

Receipts  during  period 

Disbursements  during  period 

Excess  of 
receipts 
over  dis- 
bursements 

From 
firemen 

'Other 
sources 

Total 

To 
pensioners 

20ther 
than  to 
pensioners 

Total 

Jan.  1,  1904- 
Feb.5,  1905... 
Feb.  5,  1905- 
Jan.  6,  1909.  .  . 

6 

$28,  563  08 
34,672  42 

$581  95 

$  9,  227  52 

$  9,  809  47 

$2,314  00 

$1,386  13 

$3,700  13 

$  6,  109  34 
'27,  128  50 
5,263  51 
5,052  18 
'11,225  80 
5,837  70 
6,  048  00 

Jan.  6,  1909- 
Jan.  1,  1910... 
Jan.  1,  1910- 
Jan.  1,  1911... 
Jan.  1,  1911- 
Jan.  1,  1913... 
Jan.  1,  1913- 
Jan.  1,  1914.  .  . 
Jan.  1,  1914- 
Jan.  1,  1915.  .  . 
Jan.  1,  1915... 

14 
15 

22 
21 

61,  798  92 
67,062  43 
72  114  61 
83,  340  41 

89  178,  11 
95,226  11 

631  05 

685  20 

789  50 
814  95 

10,  073  54 
11,089  19 

10,  704  59 
11,774  39 

5,  155  00 
6,352  50 

286  08 
369  71 

5,441  08 
6,  722  21 

13,  144  23 
13,  936  63 

13,933  73 
14,  751  58 

7,  997  50 
8,  370  00 

98  53 
333  58 

8,  096  03 
8,  703  58 

'This  is  computed  from  amounts  on  hand  at  beginning  and  end  of  periods,  as  receipts  and  disbursements  for 
this  period  were  not  available. 

2The  bonds  are  carried  at  face  value,  the  premiums  and  discounts  being  included  in  disbursements  and  receipts 
respectively. 


196 


TABLE  OX— (Springfield  Policemen). 

FINANCIAL  STATEMENT  REGARDING  THE  PENSION  FUND— SHOWING  BY  YEARS  BEGINNING 
WITH  THE  YEAR  1912.  THE  TOTAL  ASSETS  JANUARY  FIRST,  THE  AMOUNTS  OF  RECEIPTS 
AND  DISBURSEMENTS  DURING  THE  YEAR  AND  THE  EXCESS  OF  RECEIPTS  OVER  DISBURSE- 
MENTS; ALSO  THE  NUMBER  OF  PENSIONERS. 


Period 

Number 
of  pen- 
sioners 
on  roll 
at  end  of 
period 

Total 

assets  at 
beginning 
of  period 

Receipts  during  period 

Disbursements  during  period 

Excess  of 
receipts 
over  dis- 
bursements 

From 
police- 
men 

iQther 
sources 

Total 

To 
pensioners 

K)ther 
than  to 
pensioners 

Total 

Dec.  31,  1911- 
Dec.  31,  1912  . 
Dec.  31,  1912- 
Dec.31,  1913.. 
Dec.  31,  1913- 
Dec.  31,  1914.. 
Dec.  31,  1914- 
Dec.  31,  1915.. 
Jan.  1,  1916  

1 

2 
2 

$7,  959  93 
12,884  11 

19,849  77 
26,  259  93 

$8,  332  43 

$8,332  43 
5,  149  18 
7,474  31 
7,335  16 

$372  50 
225  00 
258  65 
225  00 

$372  50 
225  00 
508  65 
925  00 

$7,  959  93 
4,924  18 
6,965  66 
6,410  16 

$250  00 
700  00 

$670  59 

6,  664  57 

!The  securities  are  carried  at  face  value  the  premiums  and  discounts  being  included  in  disbursements  and  re- 
ceipts respectively. 

TABLE  OXI— (Rockford  Firemen). 

FINANCIAL  STATEMENT  REGARDING  THE  PENSION  FUND— SHOWING  BY  YEARS  BEGINNING 
WITH  THE  YEAR  1911,  THE  TOTAL  ASSETS  JANUARY  FIRST,  THE  AMOUNTS  OF  RECEIPTS 
AND  DISBURSEMENTS  DURING  THE  YEAR  AND  THE  EXCESS  OF  RECEIPTS  OVER  DISBURSE- 
MENTS, ALSO  THE  NUMBER  OF  PENSIONERS. 


Period 

Number 
of  pen- 
sioners 
on  roll 
at  end  of 
period 

Total 
assets  at 
beginning 
of  period 

Receipts  during  Period 

Disbursements  during  period 

Excess  of 
receipts 
over  dis- 
bursements 

From 
firemen 

Other 
sources 

Total 

To 
pensioners 

Other 
than  to 
pensioners 

Total 

Apr.  10,  1911- 
Dec  31    1911. 

$  4,  862  33 
4,  862  33 
7,101  19 
9,  990  34 

12,949  11 
16,048  23 

Dec.  31,  1911- 
Dec.  31,  1912.. 
Dec.  31,  1912- 
Dec.  31,  1913.. 
Dec.  31,  1913- 
Dec.  31,  1914.. 
Dec.  31,  1914- 
Dec.31,  1915.. 
Jan.  1,  1916  

$621  60 
673  92 
714  47 

787  73 

$1,617  26 
2,215  23 
2,244  30 
2,401  39 

$2,238  86 
2,889  15 
2,958  77 
3,  189  12 

$2,  238  86 
2,889  15 
2,  958  77 
3,099  12 

1 

1 

$90  00 

$90  00 

TABLE  CXn— (Rockford  Policemen). 

FINANCIAL  STATEMENT  REGARDING  THE  PENSION  FUND— SHOWING  FOR  VARIOUS  PERIODS 
BEGINNING  IN  1910  THE  AMOUNT  OF  RECEIPTS  AND  DISBURSEMENTS  DURING  THE  PERIOD, 
AND  THE  NUMBER  OF  PENSIONERS  AT  THE  END  OF  THE  PERIOD. 


Period 

Total 

assets  at 
beginning 
of  period 

Receipts  during  period 

Disbursements  during  period 

Number 
of  pen- 
sioners 
on  roll 
at  end 
ofperiod 

From 
police- 
men 

iQther 
sources 

Total 

To 
pensioners 

iQther 
disburse- 
ments 

Total 

Aug.  5,  1910-Dec.  31,  1910 
Dec.  31,  1910-Dec.  31,  1911 
Dec.  31,  1911-Dec.  31,  1912 
Dec.  31,  1912-Dec.  31,  1913 
Dec.  31,  1913-Dec.  31,  1914 
Dec.  31,  1914-Dec.  31,  1915 

$125  28 
300  88 
306  67 
321  93 
320  21 
326  53 

$  1,502  42 
2,  533  54 
1,  066  87 
2,  672  05 
623  16 
10,  153  28 

$  1,627  70 
2,  834  42 
1,  373  54 
2,993  98 
943  37 
10,479  81 

$      75  00 
450  00 
450  00 
819  95 
1,  498  92 
5,436  32 

$      16  50 
1,021  50 

'3,  566  '66 

3,  700  00 
5,546  39 

$        91  50 

1,  471  50 
450  00 
4,319  95 
5,  198  92 
10,  982  71 

1 
1 
1 
3 
3 
6 

iValues  of  securities  were  not  given  making  impossible  the  determination  of  total  assets. 


197 


TABLE  CXIII— (Decatur  Firemen). 

FINANCIAL  STATEMENT  REGARDING  THE  PENSION  FUND-SHOWING  BY  YEARS  BEGINNING 
MAY.  1910,  THE  TOTAL  ASSETS  MAY  FIRST,  THE  AMOUNTS  OF  RECEIPTS  AND  DISBURSE- 
MENTS DURING  THE  YEAR  AND  THE  EXCESS  OF  RECEIPTS  OVER  DISBURSEMENTS. 


Period 

Number 
of  pen- 
sioners 
on  roll 
at  end  of 
period 

Total 
assets  at 
beginning 
of  period 

Receipts  during  period 

Disbursements  during  period 

Excess  of 
receipts 
over 
disburse- 
ments 

From 
firemen 

i  Other 
sources 

Total 

To 
pensioners 

iQther 
than  to 
pensioners 

Total 

May  1,  1910- 
May  1,1911... 
May  1,  1911- 
May  1,1912... 
May  1,  1912- 
May  1,1913... 
May  1,  1913- 
May  1,  1914... 
May  1,  1914- 
May  1,  1915... 
May  1,  1915- 
May  1,1916... 

May  1,  1916  

» 

$  2,  289  26 
3,  887  44 
5,908  85 
7,838  98 
9,  850  26 
11,398  32 
13,  465  37 

$  325  66 
306  11 
301  99 
331  54 
356  74 
334  66 

$  1,750  87 
2,282  01 
2,083  44 
2,  182  13 
1,  773  84 
2,481  39 

$  2,  076  53 
2,588  12 
2,  385  43 
2,513  67 
2,  130  58 
2,816  05 

$    442  25 
472  50 
441  00 
502  39 
582  52 
749  00 

$    36  10 
94  21 
14  30 

$  478.35 
566.71 
455.30 
502  39 
582  52 
749  00 

$1,598  18 
2,021  41 
1,930  13 
2.011  28 
1,548  06 
2,067  05 

3 

JThe  securities  are  carried  at  face  value  the  premiums  and  discounts  being  included  in  disbursements  and  receipts 
respectively. 

2N umber  of  pensioners  before  May  1, 1916  not  furnished  us. 


TABLE  CXIV— (Aurora  Firemen). 

FINANCIAL  STATEMENT  REGARDING  THE  PENSION  FUND— SHOWING  BY  YEARS  BEGINNING 
WITH  THE  YEAR  1907,  THE  TOTAL  ASSETS  JANUARY  FIRST,  THE  AMOUNTS  OF  RECEIPTS  AND 
DISBURSEMENTS  DURING  .THE  YEAR  AND  THE  EXCESS  OF  RECEIPTS  OVER  DISBURSE- 
MENTS. 


Period 

Number 
of  pen- 
sioners 
on  roll 
at  end  of 
period 

Total 
assets  at 
beginning 
of  period 

Receipts  during  period 

Disbursements  during  period 

Excess  of 
receipts 
over 
disburse- 
ments 

From 
firemen 

'Other 
sources 

Total 

To 
pensioners 

Other 
than  to 
pensioners 

Total 

Dec.  31,  1906- 
Dec.31,  1907.. 
Dec.  31,  1907- 
Dec.31,  1908.. 
Dec.  31,  1908- 
Dec.31,  1909.. 
Dec.  31,  1909- 
Dec.31,  1910.. 
Dec.  31,  1910- 
Dec.  31  1911 

$        25  00 

10  00 
656  28 
1,355  21 
1,380  82 
110  00 
3,  668  54 
2,  178  67 
509  06 

$        25  00 
270  07 
909  86 
1,  609  92 
1,  684  93 
476  19 
3,950  26 
2,462  96 
699  87 

$      25  00 
270  07 
907  50 
1,  599  29 
1,680  13 
465  19 
3,  880  80 
2,418  11 
695  40 

$      25  00 
295  07 
1,  202  57 
2,801  86 
4,481  99 
4,947  18 
8,827  98 
11,246  09 
11,941  49 

$  260  07 

253  58 
254  71 
304  11 
366  19 
281  72 
284  29 
190  81 



$    2  36 
10  63 
4  80 
11  00 
69  46 
44  85 
4  47 

$    2  36 
10  63 
4  80 
11  00 
69  46 
44  85 
4  47 

Dec.  31,  1911- 
Dec.  31,  1912.. 
Dec.  31,  1912- 
Dec.  31,1913.. 
Dec.  31,  1913- 
Dec.  31,  1914.. 
Dec.  31,  1914- 
Dec.  31,  1915.. 

Jan.  1,  1916  

'The  securities  are  carried  at  face  value  the  premiums  and  discounts  being  included  in  disbursements  and  receipts 
respectively. 


198 


TABLE  CXV— (Evanston  Firemen). 

FINANCIAL  STATEMENT  REGARDING  THE  PENSION  FUND-SHOWING  FOR  VARIOUS  PERIODS 
BEGINNING  WITH  DECEMBER  28,  1912,  THE  TOTAL  ASSETS  AT  THE  BEGINNING  OF  EACH 
PERIOD,  THE  AMOUNTS  OF  RECEIPTS  AND  DISBURSEMENTS  DURING  THE  PERIOD  AND 
THE  EXCESS  OF  RECEIPTS  OVER  DISBURSEMENTS;  ALSO  THE  NUMBER  OF  PENSIONERS. 


Period 

Number 
of  pen- 
sioners 
on  roll 
at  end  of 
period 

Total 

assets  at 
beginning 
of  period 

Receipts  during  period 

Disbursements  during  period 

Excess  of 
receipts 
over 
disburse- 
ments 

From 
firemen 

1  Other 
sources 

Total 

To 
pensioners 

iQther 
than  to 
pensioners 

Total 

Dec.  31,  1912- 
Dec.  31,  1913.. 
Dec.  31,  1913- 
March  31,  1915 
Mar.  31,  1915- 
Dec.31,1915.. 

Jan  1  1916 

1 

$      254  62 
3,  697  50 
15,  900  39 
19,845  30 

$  454.20 
449  99 
308  55 

$  2,  992  80 
11,  752  90 
4,011  36 

$  3,447  00 
12,202  89 
4,319  91 

$4  12 

$    4  12 

$3,  442  88 
12,  202  89 
3,944  91 

$375  00 

375  00 

!TKe  bonds  are  carried  at  face  value,  the  premiums  and  discounts  being  included  in  disbursements  and  receipts 
respectively. 

TABLE  CXVI— (Evanston  Policemen). 

FINANCIAL  STATEMENT  REGARDING  THE  PENSION  FUND— SHOWING  FOR  VARIOUS  PERIODS 
BEGINNING  APRIL  30,  1911,  THE  TOTAL  ASSETS  AT  THE  BEGINNING  OF  EACH  PERIOD,  THE 
AMOUNTS  OF  RECEIPTS  AND  DISBURSEMENTS  DURING  THE  PERIOD  AND  THE  EXCESS  OF 
RECEIPTS  OVER  DISBURSEMENTS;  ALSO  THE  NUMBER  OF  PENSIONERS. 


Number 
of  pen  - 
sioners 

Total     . 
assets  at 

Receipts  during  period 

Disbursements  during  period 

Excess  of 
receipts 

Period 

on  roll 
at  end  of 
period 

beginning 
of  period 

From 
police- 
men 

Other 
sources 

Total 

To 

pensioners 

Other 
than  to 
pensioners 

Total 

over 
disburse- 
ments 

April  30,  1911- 

April30,  1912.. 

$  96  73 

$      374  85 

i      471  58 

$    105  85 

$    105  85 

$    365  73 

April  30,  1912- 

April30,  1913.. 

S      365'  73 

289  41 

6,469  18 

6,  758  59 

173  95 

173  95 

6,  584  64 

April  30,  1913- 
April  30,  1914.  . 

3 

6,  950  37 

299  80 

5,  245  39 

5,545  19 

1,029  60 

64  88 

1,094  48 

4,450  71 

April  30,  1914- 

Dec.  31,  1914  . 

3 

11,401  08 

222  25 

6,  907  90 

7,  130  15 

950  40 

49  60 

1,000  00 

6,  130  15 

Dec.  31,  1914- 

Dec.  31,  1915.. 

5 

17,531  23 

338  56 

3,  707  65 

4,  046  21 

2,251  65 

193  28 

2,  444  93 

1,601  2* 

Jan.  1,  1916  

5 

19,132  51 

TABLE  CXVII— (Moline  and  Champaign  Policemen). 

SHOWING  DISBURSEMENTS  FOR  THE  YEAR  1915  AND  THE  NUMBER  OF  PENSIONERS  ON 
DECEMBER  31,  OF  THAT  YEAR, 


City 

Total 

assets  at 
beginning 
of  period 

Receipts  during  period 

Disbursements  during  period 

Excess  of 
receipts 
over 
disburse- 
ments 

Number 
of  pen- 
sioners 
on  roll 
at  end  cf 
period 

From 
police- 
men 

Other 

sources 

Total 

To 

pensioners 

Other 
disburse- 
ments 

Total 

i 

i 

i 

' 

1 

$1,  680  00 
420  00 

i 

$1,  680  00 

420  00 

i 

! 

4 
1 

Champaign  

Wo  pension  funds  accumulated.    Pensions  are  paid  from  city  pay  roll. 


199 


Hit 

£1=1  S 


3  : 


8 


II 


QC 


S3 

CO      • 


ill 


I: 

S  ': 


rf«  iO 

O  5t 


<      '' 
°     \ 

«2 


2 

5s  os 

CO  CO 

II 


II 


22 

COCO 


II 


II 


438 

II 


II! 


1=  ^ 

5-         I 
I  |1 


200 


CHAPTER  VII. 


STATISTICS  SHOWING  EXTENT  OF  PRESENT  AND  POS- 
SIBLE FUTURE  PENSION  LEGISLATION  FOR  PUBLIC 
SERVICE  EMPLOYEES  IN  ILLINOIS. 

In  this  chapter  are  given  tables  tending  to  show  the  extent  of 
present  and  possible  future  pension  legislation  for  public  service 
employees  in  this  State. 

Table  CXIX  was  arranged  from  figures  furnished  by  the  Legisla- 
tive Reference  Bureau  of  Illinois.  Mr.  Bell,  Secretary  of  this  Bureau, 
to  whom  the  collection  of  these  figures  was  entrusted,  reported  that  data 
regarding  the  number  of  public  service  employees,  State  and  local,  in 
this  State,  not  under  civil  service  rules  had  never  been  collected  in  the 
past;  that  he  was  frustrated  in  getting  it  in  detail  for  this  report, 
because  of  the  fact  that  many  of  those  able  to  furnish  the  information 
regarding  their  own  local  community  failed  to  reply  to  the  question- 
naires he  sent  out,  and  that  he  was,  therefore,  compelled  to  make  an 
estimate  of  the  number  of  such  employees,  based  on  the  replies  he 
received. 

The  other  tables  of  this  chapter  were  prepared  by  our  own  employ- 
ees from  the  records  of  the  State  Civil  Service  Commission.  It  will  be 
noted  that  the  total  number  of  employees  as  given  in  Tables  CXXI  and 
CXXIII  does  not  agree  with  that  given  in  Table  CXIX.  The  reason 
for  this  is  that  certain  part-time  employees  are  listed  in  Table  CXIX, 
but  not  in  Tables  CXXI  and  CXXIII. 

TABLE  CXIX— (Public   Service  Employees,   Illinois).1 

SHOWING  NUMBER  OF  PUBLIC  SERVICE  EMPLOYEES  IN  ILLINOIS,   STATE  AND  LOCAL,    UNDER 
CIVIL  SERVICE  AND  NOT  UNDER  CIVIL  SERVICE,   SUB-CLASSIFIED  INTO  THOSE  COVERED 
BY  PENSION  LEGISLATION  AND  THOSE  NOT  SO  COVERED. 
(Federal  Employees  not  included) . 


Number  under  civil  service 

Number  not  under  civil 
service  including  elective 
officials  and  teachers 

Covered  by 
pension  legis- 
lation 

Not  covered 
by  pension 
legislation 

Covered  by 
pension  legis- 
lation 

Not  covered 
by  pension 
legislation 

19,  631 

'    'l24" 
187 
62 

x 

"'S,'  509'" 
912 
1,219 
659 

'"i,'248"' 
100 
259 

8,269 

722 
1,011 

State  of  Illinois  

West  Park  Commission  

'"706"' 
2,082 

Lincoln  Park  Commission  

Sanitary  District  

Evanston  >  
Springfield  

40 

88 
171 
40 
18 
26 
76 
58 
25 
2      98 

437 

Joliet  

Rockford  .-•••••.  
90  cities  outside  Chicago,  including  above  
101  counties  outside  of  Cook  County  and  teachers  outside 
of  Chicago  and  Peoria  

Totals               

26,  000 

"'4,'  320'" 
3,700 

20,  644 

9,906 

34,  706 

12,535 

!See  Text  above.        2Police  and  Fire. 


TABLE  CXX—  (Public   Service   Employees,    Illinois). 

OF  STATE  DEPARTMENTS  SHOWING  NUMBER  OF  EMPLOYEES  UNDER  CIVIL  SERVICE  IN 
EACH  ON  JANUARY  1.  1916. 


Department 


Number 


Department 


Number 


Accountants,  Examiners  of  Public;  University  of 
Illinois;  Urbana 

Adjutant  General;  Springfield 

Administration,  Board  of;  Springfield 

Apiaries,  Inspector  of;  Putnam 
Appellate  Court,  First  District,  Chicago 
Appellate  Court,  Second  District;  Ottawa ... 
Appellate  Court,  Third  District;  Springfield. . 
Appellate  Court,  Fourth  District;  Mt.  Vernon 
Arbitration,  Board  of;  Springfield 

Architects,  Examiners  of;  Chicago 

Architect,  State;  Chicago 

Attorney  General;  Springfield  and  Chicago 

Auditor  of  Public  Accts;  Springfield  and  Chicago. 

Barbers'  Examiners;  Chicago 

Biological  Laboratory;  Springfield 

Canal  Commission,  Illinois  and  Michigan;  Lock- 
port  

Charities  Commission;  Springfield 

Civil  Service  Commission;  Springfield  and  Chicago 

Deportation  Department,  State;  Chicago 

Dental  Examiners;  Springfield , 

Eastern  Normal  School;  Charleston 

Employment  Agencies;  Licensed;  Chicago 

Entomologist,  State;  Urbana 

Equalization,  Board  of;  Springfield 

Executive  Department;  Springfield 

Factory  Inspection;  Chicago 

Farmers'  Institute;  Springfield 

Fire  Marshal;  Springfield  and  Chicago 

Food  Commissioner;  Chicago 

Fort  Massac,  Metropolis 

Free  Employment  Office? — 

Chicago 

Peoria 

Rockford. . : . . .  

Rock  Island 

Springfield 

East  St.  Louis 

Game  and  Fish  Conservation  Commission,  Spring 

field 

Geological  Survey;  Urbana 

Grain  Inspection;  Chicago 

Grain  Inspection;  East  St.  Louis 


1 

1 

93 
5 

103 
11 


Health,  Board  of;  Springfield  and  Chicago 

lighway  Commission;  Springfield 

listorical  Library;  Springfield 

ndustrial  Board,  Chicago 

nheritance  Tax  Department;  Springfield; 
Chicago 

nsurance  Department;  Springfield 

jabor  Statistics,  Bureau  of;  Springfield 

laboratory  of  Natural  History;  Urbana 

jand  Commission  of  Kaskaskia,  Kaskaskia . . 

library  Extension  Commission;  Springfield. . 

Library,  State;  Springfield 

jieutenant  Governor;  Springfield 

Lincoln  Homestead;  Springfield 

Lincoln  Monument;  Springfield 

Live  Stock  Commissi9n;  Springfield 

Mine  Rescue  Commission;  Springfield,  (Head 
Office) 

Mine  Rescue  Stations;  Benton  and  La  Salle 

Mining  Board;  Springfield 

Natural  History  Museum;  Springfield 

Normal  University;  Normal 

Northern  Normal  School;  DeKalb 

Nurses,  Examiners  of  Registered;  Springfield. . . 

Pardons,  Board  of;  Springfield 

Park  Commission;  Ottawa 

Pharmacy,  Board  of;  Springfield 

Printing,  Superintendent  of;  Springfield 

Prison  industries,  Board  of;  Springfield 

Public  Instruction,  Superintendent  of;  Spring- 
field   

Rivers  and  Lakes  Commission;  Chicago 

Secretary  of  State;  Springfield 

Secretary  of  State;  Chauffeurs'  Examiners 
Chicago 

Southern  Normal  School;  Carbondale 

Stallion  Registration,  Board  of;  Springfield. 

Supreme  Court;  Springfield 

Treasurer,  State;  Springfield 

University  of  Illinois;  Urbana 

Utilities  Commission,  Public;  Springfield 

Western  Normal  School;  Macomb 

Total... 


23 


10 


349 
58 
13 

1,196 


202 


TABLE  CXXI— (Public   Service  Employees,   Illinois). 

SHOWING  THE  NUMBER  AND  SALARIES  OF  CIVIL  SERVICE  EMPLOYEES  OF  TABLE  CXX,  CLAS. 
SIFIED  BY  YEARS  OF  SERVICE. 


Years  of 
service 

a 

S3 

00-8399 
[nclusive 

S.§ 

E§ 

Rl 

00-1599 
[nclusive 

o>£ 
H 
il 

|l 

Si 

« 

O   C3 

<D 

00041.249 
nclusive 

25041,499 

nclusive 

§.£ 

Si 

00042,499 

nclusive 

ii 

T3 

Totals 

3 

3 

a; 

8 

1 

<i/^ 

SB 

1 

t# 

w 

S 

$ 

u 

8 

0  
1  
2  
3  
4  
5  
6  
7  
8  
9  
10 

8 
2 

'i 
i 

2 

5 
3 

i 

i 

5 
1 
2 
1 
1 
1 
1 

i 

8 
4 
1 

2 

"i 

28 
30 
20 
7 
3 
8 
4 
1 

29 
19 
21 
10 
8 
12 
10 
4 
5 
4 
3 

9 
12 
9 
5 
9 
2 
7 
2 
5 
2 
4 

29 
28 
23 
8 
8 
11 
10 
8 
1 
1 
3 

69 
100 
92 
23 
17 
38 
19 
12 
9 
11 
10 

3 
16 
11 

2 
1 
4 
1 
2 

i 

20 
38 
18 
11 
4 
19 
10 
11 
5 
6 
3 

3 

2 

'"i" 
""i" 

4 
2 

'"2" 
1 

1 

5 
3 
1 
...... 

2 
2 

i 

i 

4 

...... 

2 

'"i" 

3 
1 

217 
261 
204 
73 
52 
109 
71 
46 
27 
32 
26 

11  
12  
13  
14  
15 

i 

i 

..2 
.... 

.... 

1 
1 
1 

1 
...„. 

1 

1 
1 

""i" 

i 

3 
1 
1 
3 
1 

2 

'"i 

2 

3 

2 

2 

1 

"i" 

i 

'"i" 

14 
6 

7 
9 

7 

16  
17  
18  
19  
20 

"i" 

'i 
1 

"  i 

'"2" 

...... 

2 
1 

3 
1 

2 
3 
2 

'"3" 

"i" 

2 

3 

7 
'  8 
5 
4 

21  
22 

i 

1 

2 

23  

1 

i 

2 

24  
25  

i 

1 

26 

1 

1 

27 

28  

29 

30  

31  ..  . 

1 

j 

44 

i 

•< 

Totals.  . 

14 

10 

14 

17 

109 

130 

70 

138 

414 

48 

164 

30 

16 

22 

1,196 

TABLE  OXXII— (Public  Service  Employees,  Illinois). 

LIST  OF  STATE  INSTITUTIONS  SHOWING  NUMBER  OF  EMPLOYEES  UNDER  CIVIL  SERVICE  IN  EACH 

ON  JANUARY  1,  1916. 


Institution 

Number 

Instituti  on 

Number 

Hospitals  for  the  Insane: 
Alton  
Anna  
Chicago 

9 
339 
466 

Lincoln  School  and  Colony  (For  Feeble-minded); 
Lincoln  
School  for  Boys;  St.  Charles  
Training  School  for  Girls'  Geneva 

278 
94 
70 

Elgin  
Jacksonville  
Kankakee 

327 
361 
637 

Soldiers  and  Sailors'  Home;  Quincy  
Soldiers'  Orphans'  Home;  Normal  
Soldiers'  Widows'  Home*  Wilmington 

95 
63 
28 

Peoria  
Watertown  
Hospital  for  the  Criminal  Insane: 
Chester;  at  Menard  
School  for  the  Blind1  Jacksonville 

395 
262 

38 

77 

Psychopathic  Institute;  Kankakee  
Illinois  State  Penitentiary;  Joliet  
Southern  Illinois  (Chester)  Penitentiary; 
Menard  
Illinois  State  Reformatory;  Pontiac.           

19 
119 

101 
80 

School  for  the  Deaf;  Jacksonville            

132 

Total  .  ;  

4,065 

Colony  for  Epileptics;  Dixon  
Eye  and  Ear  Infirmary;  Chicago  

"'59' 

203 


TABLE  CXXIII— (Public  Service  Employees,  Illinois). 

SIIOWIM;  TIM:  NUMBER  AND  SALARIES  OF  CIVIL  SERVICE  EMPLOYEES  IN  TAIU.I: 
CXXII,  CLASSIFIED  BY  YEARS  OF  SERVICE. 


Years  of 

*>2 
|| 

s| 

> 
tSi  ^ 

»> 
5i'K 

-o  - 

§1 

0 

f'i 

§•7: 

£'£ 

05 
35 
—  I    <u 
*  > 

S    <u 

7/| 

5> 

<*•'<£ 

§ 
"*1  f 

T 

(j 

- 

i 

Total* 

service 

~8 

•8 

ol 

sj 

i  "3 

S£ 

|| 

31 

,~ 

5?  c 

o  fc 

o  % 

H  c 

<=>£ 

^  c 

XQ    C 

3    , 

0 

-    C 

s  •- 

3 

3 

,7. 

1 

£ 

» 

£ 

1 

T 

0» 

T 

we 

8 

-1 

0  

2 

13 
15 

671 

448 

82 
330 

24 

83 

26 

46 

13 
44 

9 
25 

2 
8 

'9' 

9 
2 

8 
11 

"«' 

2 
9 

i 

'4 

861 
1  041 

2  
3  
4  
5  
6... 
7 

1 

7 
3 

'2 
1 

66 
58 
18 
18 
8 
3 

298 
178 
68 
47 
35 
25 

81 
57 
33 
19 
16 
6 

37 

24 
2!) 
30 
18 
15 

37 
29 
17 
19 
9 
16 

25 
9 
8 
18 
13 
13 

10 
10 
3 
5 
6 
4 

4 
3 
3 
3 
3 
3 

4 
6 
5 
3 
5 
6 

2 
2 
2 
1 
3 
1 

3 
3 

4 

i 

19 
13 

4 
6 
4 
3 

2 
1 
2 
5 
4 
1 

1 

1 

"3 
3 

5.97 
397 
197 
176 
128 
101 

8... 

1 

6 

19 

7 

16 

12 

13 

3 

4 

2 

1 

4 

3 

2 

93 

9 

1 

20 

5 

8 

11 

10 

3 

3 

4 

1 

3 

?, 

3 

74 

10  
11 

.... 

.... 

1 

22 
11 

9 

?, 

10 
4 

16 
4 

10 
11 

3 

1 

3 
ft 

2 

?, 

1 

?, 

2 

80 
45 

12  

1 

3 

6 

:> 

6 

5 

3 

1 

1 

1 

32 

13 

• 

7 

9 

fi 

4 

9 

1 

1 

1 

3 

1 

29 

14  
15 
16 

1 

...... 

5 
4 
3 

5 

"V 

10 
3 
2 

5 
2 
4 

6 
3 

2 
1 
3 

2 
2 

2 
1 

3 

i 
i 

4 
1 

"2 
1 

.... 

45 
19 

20 

17  

2 

4 

3 

3 

1 

2 

2 

17 

18 

1 

i 

1 

3 

?, 

1 

1 

1 

3 

15 

19  

1 

i 

4 

2 

4 

2 

2 

1 

1 

3 

1 

22 

20 

1 

3 

9 

8 

21  

2 

2 

2 

1 

i 

1 

11 

22 

1 

1 

1 

1 

5 

23 

2 

2 

1 

4 

11 

24 

1 

1 

j 

4 

25 

i 

1 

3 

26 

? 

1 

i 

4 

27 
28'" 

.... 

1 

..  .^. 

1 

i 

1 

1 

4 
3 

29 

1 

30 

1 

i 

? 

1 

5 

31 

1 

1 

2 

32  
33 

1 

.... 

i 

1 

2 

34 

1 

i 

?, 

4 

35 

1 

1 

36  
37. 

'"2 

1 

1 

2 
2 

38 

1 

1 

2 

39 

40 

41 

1 

1 

Totals  .  .  . 

8 

45 

1,305 

1,163 

369 

303 

264 

200 

76 

44 

61 

46 

21 

105 

28 

22 

4,055 

—14  PL 


APPENDIX  A. 

TABULAR    DIGEST    OF    PENSION    LAWS    ENACTED    IN 
ILLINOIS  FROM  1852  TO  1916. 

INDEX  TO  APPENDIX  A. 
Beneficiaries.  Pages. 

Firemen 206  to  211  inclusive. 

Policemen    212  to  219  inclusive. 

Park    policemen    220  and  221. 

County   employees    222  and  223. 

Fire  insurance  patrolmen 224  and  225. 

Municipal  employees 226  and  227. 

Public  school  employees 228  and  229. 

Employees  of  public  libraries 230  and  231. 

Employees  of  houses  of  correction 232  and  233. 

Public  school  teachers ..234  to  239  inclusive. 


206 


FIRE 


Reference 

Sources  of  revenue. 

to  legisla- 
tion. 

Beneficiaries. 

Management. 

Employees. 

Other  sources. 

1874. 

Members    of    po- 

Corporate   authorities    shall 

1.  Fines    for    vio- 

R.  S.  1874, 

lice     and    fire    de- 

make      appropriations       from 

ating      department 

Ch.  24, 

partments     of    any 

i  fund  to  be  set  apart  in  city 

rules. 

221-226. 

city  whose  authori- 

;reasury. 

ties  provide  by  or- 

dinance     for      the 

fund. 

Amended 

Adds: 

L.  1875, 

2.  Fines    for    vio- 

pp.  42,  43. 

ating      fire      ordi- 

nances. 

3.  Proceeds         of 

sales  of   unclaimed 

stolen  property. 

Revised 

Members    of    po- 

"Trustees of  the  Police  and 

Assessment,     if 

Adds: 

L.  1877, 

lice     and     fire    de- 

Firemen's    Relief    Fund",     to 

evied,     not    to 

4.  One-fourth      of 

p.  62. 

partments     of    any 
city  or  village. 

consist    of    mayor,    heads    of 
police    and    fire    departments, 

exceed      $5      a 
year. 

taxes    and    license 
!ees    of    fire    insur-; 

. 

and    chairmen    of    police    and 

ance          companies 

Ire   committees   of   city   coun- 
cil   or    village    trustees,    with 

not        incorporated 
under  laws  of  Illi- 

jower   exclusively    to    manage 

nois. 

und  and  finally  to  determine 

5.  Interest          on 

applications    for    relief. 

fund. 

Amended 
L.  1879, 
p.  72. 

Adds    to    board,    the    comp- 
roller,    if   any,   or   city   clerk, 
and    treasurer. 

Adds: 
Persons    entitled 
to  benefits  may  be 
assessed,  though  no 

longer    in    service.' 

Amended 

(Perhaps      limits 

Lmi883, 

act  to  cities,   etc., 

portion     of     taxes 

p.  59. 

of  10,000.) 

and  license  fees  to 

one-half. 

Adds: 

6.  One-fourth      of 

tax  on  dogs  in  cit- 

ies,  etc.,  of  10,000. 
Adds: 

L"  1901, 
p.  122. 

7.  Two    per    cent 
of    saloon    licenses- 
in    cities    of    10,000 

if      authorized     by 

popular   vote. 

L.  1887. 

Members  of  paid 

"Board    of    Trustees   of   th* 

Assessment 

1.  One    per    cent 

p.  117. 

fire  departments  ir 

Firemen's    Pension   Fund",    to 

on   salaries  no1 

of     revenues     from 

cities,  villages  and 

consist  in  cities  of  city  treas- 

to     exceed      1 

licenses. 

incorporated   towns 

urer,      clerk,      attorney,      fire 

per      cent      or 

Rewards    for    ex- 

of  o\er   50,000. 

chief,     and     comptroller,     anc 

$20   a   year. 

traordinary        servj 

in   towns   of   the   president   oj 

ices,     unless     coral 

board    of    trustees,    clerk,    at- 

petitive     or      pen 

torney,   and  fire  chief.     Board 

mitted    to    be    re- 

to   have    exclusive    control    o1 

tained. 

fund,   and  conclusively  to   de- 

termine  applications   for   pen- 

sions. 

207 


MEN. 


Refunds. 

Amount  of  pen- 
sion. 

Conditions  for  pension. 

Pensions  to 
survivors. 

Other  data. 

Such    Amount    H.S 

1.  Disability       incurred       in 

2.  Such 

to     the     corporate 
authorities      seems 

discharge  of   duty. 
2.  Death    in,    or    because    of 

amount    as    to 
;he       corporate 

ust     and     reason- 

injury received   in,   active  dis- 

authorities 

able. 

charge    of    duty. 

seems   just   for 

relief     of     sur- 

viving       mem- 

bers of  family. 

Where  there  is  a 

chartered      benevo- 

ent  society  of  po- 

icemen  or  firemen, 

city     may     appro- 

priate    to     it     its 

equitable    share    of 

the   fund. 

Not    over   $600   a 

2.  Substitutes  "being  killed" 

2   and   3.  Not 

year. 

for    "death"    In    discharge    of 

over      $&00      a 

duty. 

year  to  widow, 

Adds: 

while       unmar- 

3. Death  in   service   after   1( 

ried,       or       to 

years'    service. 

children     under 

3.  Substitutes:       Death     af 

16. 

ter    10   years'    service,    assess 
ments  not  in  arrears. 

1,    2   and   3. 
Half    salarv,    nol 
to   exceed   $1,000  a 
year. 

Board    may    award    pensions 
in  following  cases: 
1.  Retirement  for  mental   or 
physical    disability    contractec 
in   service. 
2.  Retirement  for  mental  or 
physical     disability     after     10 
years'    continuous    service. 
3.  Retirement,  aged  50,  after 
25    years'    consecutive    service 
disabled  for  active  service. 
4.  Being    killed    in    perform 

1,  2,  3,  4,  5 
and    6. 
Board     may 
award      $30      a 
month    to    wid- 
ow,   while    un- 
married,       and 
$6      a      month 
for    each    child 
under     16,     the 
total      not     to 
exceed          hall 

Interest    on    fund 
to    accumulate    un- 
til fund  is  $200,000. 
$200,000  ;  when  ac- 
cumulated, to  form 
permanent   fund   or 
which  only  the  in- 
come shall  be  paid 
out. 
Pensions    payable 
pro  rata  if  fund  is 
insufficient. 

ance   of   duty. 
5.  Death     from     injury     re 
ceived    or    disease    contractec 

salary  or  $1,000 
a    year. 

in  performance  of  duty. 

8.  Death     after      10     years 

continuous  service  from  cause 

contracted  in  service. 

208 


FIREMEN 


Reference 
to  legisla- 
tion. 

Beneficiaries. 

Manag-ement. 

Sources  of  revenue. 

Employees. 

Other  sources. 

Amended 
L.  1889, 
p.  80. 

Added  to 
L.  1901, 
p.  97. 

Amended 
L.  1905, 
p.  100. 

Amended 
L.  1907, 
p.  186. 

p.  126. 
Amending 
L.  1901, 
p.  97. 

L.  1909, 
p.  128, 

1.  Omits  lim- 
itation   to    $20. 

Adds: 
2.  Fines  and  pen- 
alties   imposed    on 
firemen. 

Adds  : 
3.  One  -fourth      of 
municipal     tax     of 
not  over  2  per  cent 
of  receipts  of  com- 
panies not  incorpo- 
rated    in     Illinois, 
from  fire  insurance 
effected  within  the 
city,    town    or    vil- 
lage. 

3.  Increases  share 
of  tax  to  one-half. 

Adds: 
4.  Fines    for    vio- 
lating     fire      ordi- 
nances enforced  by 
fire    department. 

3.  Strikes         out 
half    share    of    tax 
in    cities     of    over 
50,000    and    substi- 
tutes half  share  of 
tax  in  cities,   etc., 
of  lest  than  50,000. 

• 

Extends  act  to 
cities,  villages  and 
ncorporated  towns 
of  over  5,000. 

Adds  to  board  2  active 
members  of  fire  department 
elected  by  active  members. 

— Continued. 


209 


Refunds. 

Amount  of  pen- 
sion. 

Conditions  for  pension. 

Pensions  to 
survivors. 

Other  data. 

1,  2  and  3. 
Half    salary. 

Substitutes  for   1,   2,   3,   4,   5 
and     6  :     Board     shall     award 

If     2,     3,     4 

and   5. 

tensions  in  following  cases: 

Provides  : 

1.  Retirement  for  mental   or 

Board          shall 

)hysical    disability    by    reason 

award             the 

of   service. 

sums         above, 

2.  Retirement    or    discharge, 

but  omits  limi- 

aged  50,  after  22  years'   serv- 

tation       to 

ice,   the   last   two   continuous. 

$1,000    a    year. 

3.  Being    killed    in   perform- 

ance  of   duty. 

4.  Death     from     injury     re- 

\ 

ceived  in  line  of  duty,  or  dis- 

ease  contracted  by   reason   of 

occupation. 

5.  Death    (in    service    or    re- 

tired)   after  22  years'   service. 

. 

Substitutes  for  2,  3  and  4: 
2.  Retirement    or    discharge 
after    22    years'    service,    the 
last  two  continuous. 
3.  Being     killed     while     in 
service. 

Increases 
widow's       pen- 
sion   to    $35    a 
month;        chil- 
dren's  to    $8   a 
month,   and  af- 

Excess     accumu- 
lated   above    $200,- 
000  also  to  be  kept 
as      a      permanent 
fund. 

4.  Death     from     injury     re- 
ceived  in   service,   or  diseases 

ter  their  moth- 
er's    death     to 

contracted  by  reason  of  occu- 

$15 a  month. 

pation. 

Adds        pen- 
sions   of   $25   a 

month     to     de- 

pendent   father 

and  mother,  iJ 

fireman        waa 

their  sole   sup- 

port. 

Reduces     amount 

of   fund   to   be   ac- 

cumulated      before 

income      may      be 

paid    out    in    pen- 

sions.  Transfers  to 

this    fund    one-half 

of    police    and    fire 

pension    funds    ex- 

isting under  law  of 

1877    in    cities     of 

5,000. 

210 


FIREMEN 


Reference 

Sources  qf  revenue. 

to  legisla* 
lion. 

Beneficiaries. 

Management. 

Employees. 

Other  sources. 

Amended 

Adds  to  board   a  retired  or 

L.  1913, 

pensioned    fireman    elected   by 

p.  170. 

retired  and  pensioned  firemen. 

Added  to 

3.  Changes      pro- 

L. 1915, 

vision      that      one- 

p.  284. 

half    tax    shall    be 

Amending 
L.  1909, 

set  apart  for  fund, 
to  read  that  all  of 

p.  126. 

tax  may  be  so  set 

apart. 

Revised 
L.  1915, 
p.  292. 

Drops  attorney   from  board, 
and   adds   a    third   active   fire- 
man. 

1.  Changes   1  per 
cent     of     revenues 
from     licenses,     to 
1   per   cent   of   oc- 

cupation    licenses, 

excepting        public 

utilities. 

Adds: 

5.  Tax   of   three- 

tenths  mill  (not  to 

be    included    in    3 

per  cent  tax  limit) 

may    be    levied    on 

all'   taxable     prop- 
erty,   during    1915, 

t 

19i6    and    1917. 

211 


—Concluded. 


Refunds. 

Amount  of  pen- 
sion. 

Conditions  for  pension. 

Pensions  to 
survivors. 

Other  data. 

2    Reduces  period  of  service 

to    20   years. 

Substitutes   for   1  : 

Increases 

Omits    provisions 

1.  Retirement   rendered   nec- 
essary  by   becoming   disabled. 
Pension  to  cease  if  disability 
ceases. 
Substitutes  for  3,   4  and  5: 
Death  from  any  cause  while 

widow's       pen- 
sion   to    $45    a 
month. 
Excludes 
widow     who 
marries  fireman 

ibout        permanent 
fund.         Empowers 
board  to  take  over 
existing    funds    for 
firemen's    pensions. 

in    service,    or    during    retire- 

after    he     has 

ment  after  20  years'  service. 

retired         with 

pension,        and 

excludes     their 

children. 

aia 


POLICE 


Reference 

Sources  of  revenue. 

to  legisla- 

Beneficiaries. 

Management. 

tion. 

Employees. 

Other  sources. 

1874. 

Members    of    po- 

Corporate   authorities     shall 

1.  Fines    for   vio- 

R. S.  1874, 
Ch.  24, 
221-226. 

lice     and     fire     de- 
partments   of    any 
city  whose  authori- 

make   appropriations     from    a 
fund   to  be   set  apart   in  city 
treasury. 

lating     department 
rules. 

ties  provide  by  or- 

dinance     for      the 

fund. 

Amended 

Adds: 

L.  1875, 

2.  Fines    for   vio- 

pp. 42,  43. 

lating      fire      ordi- 

nances. 

3.  Proceeds        of 

sales  of  unclaimed 

stolen  property. 

Revised 

Members    of    po- 

"Trustees of  the  Police  and 

Assessment, 

Adds: 

L.  1877, 

lice    and     fire    de- 

Firemen's    Relief     Fund",     to 

if     levied,     nol 

4.  One-fourth     of 

p.  62. 

partments    of    any 
city  or  village. 

consist    of    mayor,    heads    of 
police    and    fire    departments, 
and    chairmen    of    police    and 
fire  committees  of  city  coun- 

to exceed  $5  a 
year. 

taxes    and    license 
fees   of   fire    insur- 
ance        companies 
not        incorporated 

cil    or    village    trustees,    with 

under  laws  of  Illi- 

power   exclusively    to    manage 

nois. 

fund  and  finally  to  determine 

5.  Interest          on 

applications  for  relief. 

fund. 

Amended 

Adds    to    board,    the    comp- 

Adds: 

L.  1879, 

troller,   if   any,   or  city  clerk, 

Persons    entitled 

p.  72. 

and  treasurer. 

to  benefits  may  be 

assessed,  though  no 

longer    in    service. 

Amended 

(Perhaps      limits 

4.  Increases     pro- 

L. 1883, 

act  to  cities,  etc., 

portion      of      taxes 

p.  59. 

of  10,000.) 

and  license  fees  to 

one-half. 

Adds: 

6.  One-fourth     of 

tax     on     dogs     in 

cities,  etc.,  of  10,000. 

Amended 

Adds: 

L.  1901, 

7.  Two    per    cent 

p.  122. 

of    saloon    licenses 

in   cities   of    10,000 

if     authorized     by 

popular  vote. 

213 


MEN. 


Refunds. 

Amount  of  pen- 
sion. 

Conditions  for  pension. 

Pensions  to 
survivors. 

Other  data. 

1    Disability       incurred       in 

2.  Such 

;o     the     corporate 
authorities      seems 

discharge    of    duty. 
2.  Death   in,   or  because   of 

amount    as    to 
;he      corporate 

ust     and     reason- 
able. 

njury  received  in,  active  dis- 
charge  of   duty. 

authorities 
seems    just    for 
relief     of     sur- 

viving       mem- 

- 

>ers  of  family. 

Where  there  is  a 

chartered      benevo- 

lent society  of  po- 
licemen     or      fire- 

men, city  may  ap- 

propriate to   it  its 

equitable    share    of 

Not   over  $600   a 

2    ftiihttitutp*   "hpin<?   killed" 

2       and       3 

the  fund. 

year. 

'or    "death"    in    discharge    of 
duty. 

Not    over    $600 
a  year  to  wid- 

Adds: 

ow,    while    un- 

3. Death  in  service  after  10 

married,    or   to 

years'    service. 

children     under 

16. 

3   Substitutes'     Death    after 

10  years'  service,  assessments 

not  in  arrears. 

214 


POLICEMEN 


Reference 

Sources  of  revenue. 

to  legisla- 

Beneficiaries. 

Management. 

tion. 

Employees. 

Other  sources. 

L.  1887, 

Members    of    po 

"Board    of     Police     Pension 

One  per  cen 

1.  Two    per    cent 

p.  122. 

lice    force    in    cit 

Fund  Commissioners,"  con 

of     salary,     no 

of    saloon    licenses. 

ies,     villages     am 
incorporated  towns 
of    50,000. 

sisting  of  president  of  boan 
of  trustees,  comptroller,  clerk 
head  of  police  department 

to  exceed  $2 
month. 

2.    Three  -  fourths 
of      licenses      and 
taxes  on  dogs. 

treasurer  and  attorney. 

3.  Fines    for    vio- 

lating    department 

rules. 

4.  Sales     of     un- 

claimed          stolen 

property. 

5.  One-fourth     li- 

censes    to      pawn- 

brokers,        second- 

hand    dealers     and 

junk  stores. 

6.  Fees  and  fines 

for     carrying     con- 

cealed weapons. 

7.  One-half    costs 

for    violating     city 

ordinances. 

8.  Rewards  to  po- 

lice unless   except- 

ed  by  chief. 

Amended 

L.  1899, 

p.  101. 
Amended 

• 

L.  1901, 
p.  123. 

Amended 
L.  1903. 
p.  107. 

"Board  of  Trustees  of  the 
3olice  Pension  Fund  of  ," 
of  5  members:  3  appointed 
>y  mayor,  1  elected  from  and 
>y  active  firemen,  1  elected 

1.  Reduces 
maximum     con 
ribution  to  fl 
a   month. 
Adds: 

1.  Substitutes     3 
>er  cent  of  licenses 
to       saloons       and 
wholesale         liquor 
dealers    and    3    per 

rom  and  by  pensioners. 

2.  One        per 
cent  to  be  de- 

cent   of    all    other 
city     licenses,     not 

ducted        from 

to  exceed  $25,000  a 

>ensions 

year. 

granted     under 

4.  Adds    sales    of 

the   act. 

unclaimed           lost 

property. 

5.  Adds        money 

>aid  for  special  de- 

;ail  of  police. 

7.  Adds  exception 

of           competitive 

awards. 

L.mi907* 

p.  199. 

215 


—Continued. 


Refunds. 

Amount  of  pen- 
sion. 

Conditions  for  pension. 

Pensions  to 
survivors. 

Other  data. 

1.  Half  salary  fo 
rank  held  for  yea 

1.  Retirement,    aged    50,    al 
ter  20  years'  police  service. 

3.  Half  salary 
to  widow  while 

Pensions  shall 
cease  on  com  ic- 

immediately  before 
retirement. 

2.  Retirement     for     physica 
disability   incurred   in,   and   i 

unmarried,  or 
if  none,  t 

tion  for  crime,  ha- 
bitual drunkenness, 

2.  Not  more  than 
half  salary. 

consequence     of,     performanc 
of     duty.      Pension    to     ceas 

children  unde 
18,  while  un 

nonresidence  in 
State,  or  disobedi- 

5. Pensions  pro 
vided  for  above. 

when  disability  ceases. 
3.  Loss    of    life    in    perform 

married. 
4.  Board   ma 

ence  to  require- 
ments of  board. 

ance    of    duty,    or    death   from 

grant  prope 

Pensions         pay- 

injuries   received    in    perform 
ance   of   duty. 

pension  not  ex 
ceeding  ha] 

able  pro  rata  if 
fund  is  insufficient. 

4.  Death     in     service     afte 

salary  to  wid 

10    years'    service. 

ow,  while  un 

5.  Right  to  pension  as  police 
man,  or  policeman's  widow  o 

married,  or,  i 
none,  to  chi 

child  under    act    of    1877   (L 

dren  under  16 

1877,    p.    62).     Pensions    unde 

while  •  unmai 

that  act  to  cease. 

ried. 

5.  Pensions 

>rovided  fo 

above. 

retirement  after 
M)   years'    eerv 
ce   to   be   con 
inued    to    wid 
ow,    while    un 
married,    or    to 

children  under 

6. 

service  to  20  years'  combined 
jolice  and  fire  service. 

Pensions  shall 
not  be  more  than 
5900  nor  less  than 
!600  a  year  (the 
maximum  limit  to 
apply  to  pensions 
previously  granted 

Excludes  from 
>ension    widow 
who         marries 
)oliceman  after 
etirement,  anc 
:heir     ch.ildr.en. 

$300,000  when 
accumulated  to  be 
a  permanent  fund, 
and  income  then 
may  be  used  to 
pay  pensions. 

' 

under  1). 

1    Extends 

\ 

ension  granted 
urvivors  by 
ct  of  1899  to 
ases  where 
ensioner  died 
efore  act  was 
assed  or  in 
orce. 

216 


POLICEMEN 


Reference 

Sources  of  revenue. 

to  legisla- 

Beneficiaries. 

Management. 

tion. 

Employees. 

Other  sources. 

Amended 

1.  Raises    as- 

1. Increases    per- 

L. 1911, 

sessment         on 

centage    of    saloon 

pp.  163, 

salaries   to    1% 

ind  liquor  licenses 

169. 

per     cent,     not 

to  4  per  cent. 

to  exceed  $3  a 

Increases      maxi- 

month. 

mum     to     be     de- 

Omits  2. 

rived  from  other  li- 

censes to  $50,000. 

Amended 

Omits  6. 

L.  1911, 
p.  170. 

Amended 

L.  1913, 

p.  174. 

L.  1909, 
p.  133. 

Members  of  po- 
lice force  in  cit- 
ies, villages  and 
incorporated  towns 
of  20,000-50,000. 

"Board  of  Trustees  of  the 
Police  Pension  Fund  of  ," 
of  3  members:  2  appointed  by 
mayor  from  residents  of  city, 
1  elected  from  and  by  police- 
men and  beneficiaries. 

1.  One        per 
cent    of    salar- 
ies, but  not  to 
exceed      $1      a 
month. 
Collections 

1.  Two    per    cent 
of  liquor  licenses. 
2.    Three  -  fourths 
of    dog    licenses. 
3.  Ten    per    cent 
of     all     other     li- 

from    em- 

censes. 

ployees     and 
other       sources 

4.  Money  paid  for 
special     detail     of 

shall     not     ex- 

policemen. 

ceed           $2,500 
in      any     year. 
The    limitation 

5.  Ten    per    cent 
of  fines  for  violat- 
ing       city        ordi- 

• 

shall      be      ef- 
fected    by     re- 

nances. 
6.  Rewards  to  po- 

ducing    the 
contribution 

licemen   unless   ex- 
cepted  by  board. 

from     proceeds 
of        dramshop 
licenses,     if 

7.  Fines   for   vio- 
lating rules  of  po- 
lice   department. 

necessary. 

2.  One       per 
cent      deducted 

from         police 

pensions. 

Amended 
L.  1913, 
p.  173. 

Extends  act  to  cit- 
ies of  9,000-50,000. 

Omits    1,    in 
case    of    cities 
that    have    not 
adopted       civil 

Omits  6,  in  case 
of  cities  that  have 
not    adopted     civil 
service     in     police 

service    in    po- 

department. 

lice         depart- 

ment. 

—Continued. 


Refunds. 

Amount  of  pen- 
sion. 

Conditions  for  pension. 

Pensions  to 
survivors. 

Other  data. 

1.  Age    requirement   omitted 

6.  Half        sal- 

Omits   provisions 

as   to   those   who    shall   retire 

ary,    not    more 

concerning  $300,000 

thereafter.     Service   as   proba- 

than    $900     nor 

fund. 

tionary  policeman  to  count  in 
20-year  period. 
Adds: 

less  than  $600  a 
year,  to   widow, 
or,  if  none,  to 

Modifies  condi- 
tions of  forfeiture 
by  changing  con- 

6. Adjudication    of     insanity 
after     10    years'    service,     and 

children     under 
16. 

viction  for  crime 
to  conviction  for 

while  still  in  service;  pension 

felony,  and  non- 

payable   to   wife    or   child,    to 
cease  if  policeman  is  declared 

residence  in  state 
to  nonresidence  in 

sane   or   leaves   Illinois. 

United  States. 

sions  for  police  matrons.  This 
statute    held    unconstitutional 
n    Lyons    vs.    Police    Pension 

Board,   255   111.,   139. 

2.  Pension  on 

retirement     for 

physical        dis- 

ability   contin- 

ued  to    widow, 

while       unmar- 

ried,    or     chil- 

dren  under    16. 

1.  Half  salary  for 
rank  held  for  year 
immediately   before 
retirement,    not    to 
exceed  $600  a  year. 
2.  Half  salary,  not 
to    exceed    $600    a 
year. 

1.  Retirement,    aged    50,    af- 
ter 20  years'  service. 
2.  Retirement    or    suspension 
'rom    duty    for    physical    dis- 
ability   incurred    in,    and    in 
consequence    of,    performance 
of  duty.     Pension  to  cease  on 
resumption  of  duty. 
3.  Loss    of    life    in    perform- 
ance  of    duty,    or    death    from 
injuries    received    in    the    per- 
formance of   duty. 
4.  Death  in   service  after   10 
years'   service. 

1.  Pension 
continued,    pro- 
vided       police- 
man    has     not 
married       after 
retirement,      to 
widow,  or  chil- 
dren   under    16, 
or        dependent 
parent,     to 
cease      as      to 
each    if    he    or 
she  marries. 
3       and       4. 

Transfers  to 
fund  under  this 
act  all  police  pen- 
sion funds  and 
half  of  police  and 
fire  pension  funds 
already  existing. 
Pensions  payable 
pro  rata,  if  funds 
insufficient.  Pen- 
sions shall  cease 
on  conviction  for 
felony,  habitual 
drunkenness,  non- 

Half  salary,  not 
to  exceed  $600  a 

residence  in  State 
(unless  climate 

year,  to  widow, 
or  children  un- 

is hazardous  to 
health),  or  dis- 

der  16,    or   de- 

obedience to  re- 

pendent      par- 
ent,    to     cease 

quirements  of 
board. 

as    to    each    if 

he  or  she  mar- 

ries. 

218 


POLICEMEN 


Reference 

Sources  of  revenue. 

to  legisla- 

Beneficiaries. 

Management. 

tion. 

Employees, 

Other  sources.  . 

L.  1915, 
p.  304. 

Policemen  in  cit- 
es of  over  200,000. 

"Board    of    Trustees   of   the 
Police  Pension  Fund  of  ....," 
of  5  members:  3  appointed  by 
mayor      from      residents      of 

1.  Two       per 
cent    of    salar- 
ies. 

1.  a.  Such  a  tax, 
during     1915,     1916 
and    1917,    not    to 
exceed  seven-  tenths 

county,     1    elected    from    and 

of    a    mill    on    the 

>y  policemen,    1   elected  from 

dollar,       as      will,' 

and    by    beneficiaries.      Board 
may    take     custody    of    fund, 

with  other  receipts, 
suffice        to       pay 

shall)     exclusively     administer 
t,  and  conclusively  decide  all 

police          pensions 
under           previous 

questions    of    fact   relating    to 
ts    administration,    shall    em- 

acts,    and   pensions 
to     policemen     ap- 

)loy actuary,   and  maintain  a 

pointed  before  1916 

reserve   fund   for  pensions   for 

and  their  survivors, 

policemen       appointed       after 

and      maintain      a 

Fanuary      1,     1916,      certifying 

reserve      for      pen- 

estimates     therefor      to      the 

sions     for     police- 

common   council. 

men   appointed    af- 

ter      January        1, 

1916,   or 

b.  If       in       any 

year  the  city  does 

not  provide  such  a 

tax,    an    equivalent 

sum      taken      from 

the  proceeds  of  li- 

censes   on    occupa- 

tions,        excepting 

public    utilities. 

2.  Money         paid 

for    special     detail 

of  policemen. 

3.  Fines    for   vio- 

lating rules  of  de- 

partment. 

, 

4.  Proceeds        of 

sales   of  unclaimed 

or  stolen  property. 

5.  Interest          on 

fund. 

6.  Rewards        for 

extraordinary       po- 

lice service,  except 

when      competitive 

or    allowed    to    be 

*  1  1_  i  (« 

retained. 

A(t<'OM    LO 

L.  1915. 

•v; 

(Contin- 
pert  on 
atloj  tinn 
by  vot- 
ers.) 

-Concluded. 


Refunds. 

Amount  of  pen- 
sion. 

Conditions  for  pension. 

Pensions  to 
survivors. 

Other  data. 

1.  Half  salary  for 

I.  Retirement     from     police 

1.  Pension 

Transfers           to 

rank  held  for  year 

force   after  20  years'   service, 

continued    to 

'und      under      this 

mmediately  before 
retirement,          not 

including    service     as    proba- 
tionary policeman  and  as  fire- 

widow,      while 
unmarried,       if 

act,      police      pen- 
sion    funds     under 

more      than      $900 

man. 

married  to   po- 

act  of   1887. 

nor   less  than  $600 

2.  Retirement     for     physical 

liceman      six 

a  year. 

disability  incurred  in,  and  in 

months     before 

2.  Half        salary, 

consequence    of,    performance 

retirement,      or 

not       more       than 

of  duty,  and  grant  of  pension 

to  natural  chil- 

f900 nor  less  than 

by   board. 

dren  under  16. 

}600  a  year. 

3.  Loss    of    life,    or    death 

2.  Pension 

6.  Pensions    pro- 

from injuries  incurred  in,  and 

continued     to 

vided  above. 

m  consequence  of,  performance 

widow,       while 

of  duty. 

unmarried,       if 

4.  Death  in  service  after   10 

married    before 

years'   service. 

disablement,  or 

5.  Adjudication    of    insanity 

to  natural  chil- 

after    10    years'    service     and 

dren   under    16. 

while    still    in    service;    pen- 

3. Half       sal- 

sion payable  to  wife  or  child, 

ary     for     rank 

to   cease   if   policeman   is  de- 

held   for    year 

clared    sane    or    leaves    Illi- 

immediately 

nois. 

before      retire- 

6. Right    to    pension    under 
previous  pension   acts. 

ment,      not 
more  than  $900 

nor    less    than 

$600  a  year,  to 

widow,       while 

unmarried,      or 

natural      chil- 

/ 

dren,    except 

wife      married 

after      police- 

man's   retire- 

ment,  and  her 

children. 

4.  Half      sal- 

ary    for     rank 

held      immedi- 

ately       before 

death,    not    ex- 

ceeding   $900   a 

year,  to  widow, 

while       unmar- 

ried, if  married 

two        months 

before      death, 

or    to    natural 

children. 

5.  Half     sal- 

iry,  not  exceed- 

ing $900  a  year, 

to  wife  or  nat- 

ural     children 

under  16. 

6.  Pensions 

1 

provided  above. 

• 

i  oliccincn       tn<it 
may  be  transferred 
to       Chicago       by 
consolidation         of 

local    governments 

shall    have     credit 

for    past    services; 

?ark  police  pension 

Fund  shall  be  add- 

ed to  Chicago  po- 

lice   pension    fund 

and     park     police 

tension          claims 

paid  from  the  con- 

solidated fund. 

—15  PL 


220 


PARK 


Reference 
to  legisla- 
tion. 

Beneficiaries. 

Management. 

Sources  of  revenue. 

Employees. 

Other  sources. 

L.  1911, 
p.  455. 

Members    of    po- 
ice     force     estab- 

"Boards of  Trustees  of  the 
Police    Pension    Fund    of    the 

1.  One        per 
cent    of     salar- 

1. Fines   for   vio- 
lating    department 

Repealed 
and  reen- 

lished       by       park 
commissioners      of 

Park  Board  of  Commissioners 
of  ,"  of  5  members:  3  to 

ies,   not  to  ex- 
ceed     $3      a 

rules. 
2.  Fines  and  pen- 

acted by 
L.  1913, 
p.  446. 

towns. 

be     residents     of     town     ap- 
pointed by   president   of  park 
board,   1  chosen  from  and  by 

month. 

alties  for  violating 
ordinances  of  park 
commissioners,      or 

active     policemen,     1     chosen 

laws  of  state  with- 

from and  by  pensioners.   Pen- 
sion  board   to   have   exclusive 

in    territory    under 
park      commission- 

management of  fund. 

ers,     when     arrest 
is    made    by    park 

policemen. 

3.  Interest         on 

fund. 

4.  Rewards         to 

park         policemen 
unless  exoepted  by 

chief. 

Revised 
L.  1915, 

Board    to     employ    actuary 
and  maintain  reserve  fund  for 

Substitutes 
for 

Substitutes  for  1, 
2,   3   and   4: 

p.  542. 
(Contingent 

pensions     for    policemen     ap- 
pointed     after      January      1, 

1.  Two  per 
cent    of    salar- 

1. Tax    on    prop- 
erty     in      district 

on  con- 

1916,   certifying   estimates   for 

ies. 

sufficient    for    pen- 

sent of 

pensions   and  reserves   to  the 

sions    and    reserve. 

park 

park   commissioners. 

but  not  to  exceed 

commis- 

one -  twenty  -  fifth 

sioners 

mill  for  South  Park 

and  town 

(Chicago),  one- 

authori- 

tenth      mill       for 

ties.) 

West  Chicago  Park, 

or  one-seventeenth 

mill     for     Lincoln 

Park   (Chicago). 

2.  Interest         on 

fund. 

4.  Rewards       for 

extraordinary   serv- 

ices    unless     com- 

petitive     or      per- 

mitted   to    be    re- 

• 

tained. 

221 


POLICEMEN. 


Refunds. 

Amount  of  pen- 
sion. 

Conditions  for  pension. 

Pensions  to 
survivors. 

Other  data. 

1.  Half   salary  for 

1.  Retirement  after  20  years 

1.  Pension 

Pensions   payable 

rank   for   year   im- 

service. 

continued        to 

pro   rata,    if   funds 

mediately       before 

2.  Retirement    for    becoming 

widow,       while 

insufficient,  and  to 

retirement,  but  not 

physically    disabled    while    a 

unmarried,      or 

cease    for    convic- 

more  than  $900  nor 

policeman.      Pension    to  cease 

children     under  |tion  of  felony,  ha- 

less    than    $600    a 
year. 
2.  Half        salary, 

when  disability  ceases. 
3.  Losing    life    in    perform 
ance  of  duty,  or  dying  of  in- 

16,   or    parent 
except         wife 
married       aftei 

bitual          drunken- 
ness,   nonresidence 
in    State    or    dis- 

but not  more  than 
$900  nor  less  than 
$600  a  year. 

juries  received  in  performance 
of   duty. 
4.  Death    or    insanity    while 

retirement,  anc 
tier  children. 
3.  Half  salary, 

obedience     to     re- 
qirements              of 
board. 

in  service  after  10  years'  serv- 

not  more   than 

ice.     Pension  payable  to  wife 
children  under  16,  or  parent. 

(900     nor     less 
than      $600      a 

year,  to  widow, 

while       unmar- 

ried,    or     chil- 

dren   under    16 

while      unmar- 

ried,    or     par- 

ents,except  wife 

married      after 

retirement,  and 

her  children. 

4.  Half       sal- 

ary,   not    more 

than      $900      a 

year,  to  widow, 

while       unmar- 

ried,     [or      in 

case    of    insan- 

ty,  to  wife],  or 
children     under 

16     while     un- 

married,         or 

. 

parents. 

1.  Retirement,  aged  50,  after 

Substitutes 
for   I: 

Omits  :   Provision 
for      paying      pen- 

20 years'   service. 
2.  Retirement    for    becoming 

I.  Pension 
continued        to 

sions      pro      rata. 
Pension    to    cease 

physically  disabled  in,  and  in 

widow,       while 

on  nonresidence  in 

consequence    of,    performance 

unmarried,       if 

United    States    in- 

of police   duty. 

married      more 

stead    of    on    non- 

4.  Adds:  In  case  of  insanity 

than   6   months 

residence  in  State. 

pension    to    cease    if    police- 
man leaves  Illinois  or  is  pro- 
nounced   restored    to    reason. 

before       retire- 
ment,     or      to 
natural        chil- 

Pensions to  be  re- 
duced   by    amount 
of        compensation 

dren  under  16. 

received           under 

Adds: 

workmen's        com- 

2.        Pension 

pensation   laws. 

continued        to 

widow,       while 

unmarried,       if 

married    before 

disablement, 

and   to   natural 

children     under 

16. 

3.  Changes 

lalf    salary    to 

half   salary   for 

rank     held     for 

vear      immedi- 

ately before  re- 

irement,      and 

excludes  widow 

married       after 

retirement,  and 

her  children. 

4.  In   case  of 

eath  in  service 

excludes  widow 

married         not 

more    than    six 

months     before 

death. 

222 


COUNTY 


Reference 
to  legisla- 
tion. 

Beneficiaries. 

Management. 

Sources  of  revenue. 

Employees. 

Other  sources. 

L.  1915, 

Officers   and    em- 

"Board   of   Trustees   of   the 

Two      dollars 

p.  342. 

)loyees  of    counties 
of      over      150,000, 

Municipal  Pension  Fund  of 
County,"  to  consist  of 

a     month     de- 
ducted       from 

except      temporary 
nd       probationary 
mployees,          em- 
ployees     who      on 

county  comptroller,  county 
treasurer,  and  3  employees 
elected  by  employees,  with 
power  to  determine  applica- 

wages,    or,     if 
employee         is 
for  good  cause 
off      the      pay 

July    1,    1915,    are 
over    60    and    have 
erved  less  than  10 

tions  for  pensions  and  to 
suspend  pensions  when  dis- 
ability ceases. 

roll,      voluntar- 
ily paid  in. 

years,  and  laborers 

who  do  not  within 

six  months  elect  to 

>articipate. 

- 

223 


EMPLOYEES. 


Refunds. 

Amount  of  pen- 
sion. 

Conditions  for  pension. 

Pensions  to 
survivors. 

Other  data. 

Amounts 

1     and    2.  $50    a 

1.  Retirement        aged       55, 

Pensions    not    to 

deducted 
with  inter- 

month. 
2.  $50    a     month 

after  20  years'  service,  having 
contributed    for    20    years,    or 

begin    before    July 
20,   1920. 

est  at  3 

for  not  more  than 

agreeing      to     pay     the      de- 

per cent  to 

two    years,     which 

ficiency    in    three    years    with 

employees 
whose  posi- 

may    be     extended 
for    continued    dis- 

5  per   cent   interest,   payment 
to     be    by     deductions     from 

tions  are 
abolished. 

ability. 

pension.        Contributions      to 
be    continued    until    July     1, 

1920,   by  those   who   retire  in 

the    interim. 

2.  Retirement        after        20 

years'     service,     having     con- 

tributed for  20  years,  or  pay- 
ing  the    deficiency    within    30 
days,    and    continued    contri- 

bution  until   55. 

3.  Retirement    for   disability 

after  5  years'  service. 

224 


FIRE  INSURANCE 


Reference 
to  legisla- 
tion. 

Beneficiaries. 

Management 

Sources  of  revenue. 

Employees. 

Other  sources. 

L.  1895, 

Members  of  paid 

Board  of  trustees  to  consist 

1.  Assessment 

1.  Two    per    cent 

p.  101. 
R.  S.,  Ch. 

24,  423- 

Ire  insurance  pa- 
trol provided  by 
board  of  under- 

of the  president,  secretary 
and  treasurer  of  the  under- 
writers, the  chairman  of  the 

not    to    exceed 
1    per    cent    of 
salary. 

of    the   money    as- 
sessed      by       the 
boards     of     under- 

434. 

writers  which  es- 

patrol committee  and  the 

writers  on  fire  in- 

tablish a  pension 
fund,  in  cities, 
villages  and  in- 

superintendent or  chief  offi- 
cer of  the  patrol.  Board  to 
aave  exclusive  control  of  fund 

surance    companies 
doing    business    in 
the    city    for    ex- 

corporated towns 
of  over  50,000. 

and  conclusively  to  deter- 
mine applications  for  pen- 
sions. 

penses   of   fire   pa- 
trol, under  author- 
ity of  act  of  March 

28,      1874.     R.      S., 

Ch.    142. 

2.  Rewards  for  ex- 

;raordinary  services 

unless    competitive 

or  permitted  to  be 

retained. 

/ 

\ 

225 


PATROLMEN. 


Refunds. 

Amount  of  pen- 
sion. 

Conditions  for  pension. 

Pensions  to 
survivors. 

Other  data. 

1     and    2      Half 

1    2   3,  4  and 

salary. 

mentally     or    physically     dis- 
abled  by  reason   of   service. 

5.     Thirty   dol- 
lars    a     month 

2.  Retirement    or    discharge, 
aged  50,   after  22  years'   serv- 
ice,  the   last  two   continuous. 

to  widow,  while 
unmarried,    and 
$6  a  month  for 

3.  Being   killed   in   perform- 
ance  of   duty. 

each    child    un- 
der 16,  the  to- 

4. Death     from     injury     re- 

tal  not  to  ex- 

ceived in  line  of  duty  or  dis- 

ceed   Half    sal- 

ease  contracted  by  reason  of 

ary. 

occupation. 
5.  Death    (in   service   or  re- 

tired)  after  22  years'   service. 

226 


MUNICIPAL 


Reference 

Sources  of  revenue. 

to  legisla- 

Beneficiaries. 

Management. 

tion. 

Employees. 

Other  sources. 

T      100"! 

. 

Board    of    trustees     a    body 

Not  less  than 

LI.    iyuo, 
p.  96. 

es  of  over  100,000. 

corporate,     consisting    of    the 

1    per    cent    or 

The      term      "em- 
ployees"     to      in- 

mayor,      comptroller     and      4 
members  elected  from  and  by 

more  than  2  per 
cent   (as  board 

lude    employees  in 
water     works     and 

contributing    employees.      The 
)oard   has   power   to    fix    con- 

may  fix)  of  sal- 
aries   of    $65    a 

water     department, 

ributions   and   pensions  with- 

month  or  more. 

eceiving      $65      a 

n  the   limits  of  the   su-t,  de- 

month. 

ermine   applications   for   pen- 

sions,   and    suspend    pensions 

or    cause. 

L.  1911, 

Emplovees  of  cit- 

1.  Two       dol- 

p.  158. 

les  of  over  100,000, 
employed         under 
Civil    Service    Act 

Municipal     Pension    Fund     of 
—  ,"  to  consist  of  city  comp- 
troller,   city    treasurer,    and   3 

lars     a     month 
deducted     from 
salary  or  wages 

of    1895,    or   before 

employees      elected     by     em- 

or, if  employee 

t  was  passed,   ex- 
cept       temporary, 
probationary  or  60- 
day          employees, 
;hose   who   partici- 

ployees,  with  power  to  deter- 
mine    applications     for     pen- 
sions,   and    to    suspend    pen- 
sions  when   disability   ceases. 

is       for      good 
cause     off    the 
pay  roll,  volun- 
tarily   paid   in 

• 

>ate      in      another 

municipal     pension 

fund,     those     who 

on    July     1,     1911 

ire     over     60     anc 

have     served     less 

than  10  years,  and 

aborers     who     do 

not       within       six 

months     elect     to 

jarticipate. 

Amended 

Excludes          em- 

A   sum    equal   to 

L.  1915, 
pp.  298,  302. 

ployees    under    21 

the      amount      de- 
ducted from   salar- 
ies   and    wages    to 

be    set   apart   from 

license  fees  on  oc- 

cupations         other 

than    public    utili- 

ties,    during     1916 

A  A  A*  A     4-« 

and   1917. 

Added  to 
L.  1915, 
pp.  262,  267. 
(Contin- 
gent on 
adoption 
by 

• 

voters.) 

• 

227 


EMPLOYEES. 


Amount  of  pen- 
sion. 


Conditions  for  pension. 


Pensions  to 
survivors. 


Other  data. 


1     and 
salary. 

3.  An  annuity  for 
2  years, 

>e      extended      for 
lontinued     disabil- 

ty. 


2.    Half 


1.  Retirement,   aged  50,  aft- 
er 20  years'   service  in  water 
works     or    water     department  widow 

which  may  and  10  years'  contribution. 

2.  Resignation    or    dismissal 
after     12     years'     service     in 
water  works  or  water  depart- 
ment,   and    continued    contri- 
bution   for    remainder    of    20- 
year    period    and    until    aged  mino 
50. 

3.  Retirement   for   disability 
after  5  years'  contribution. 

4.  Death    while    a    contribu- 
tor,   after    3    years'    contribu- 
tion. 


1.  One-fourth 
of      salary 

while 
unmarried,      or 

hildren 

8. 

4.  An  amount 
not     over     $300 

o     widow 

r  children, 
or     for    burial 

xpenses. 


On  June  29,  1916, 
to  the  Corporation 
Council  of  the 
City  of  Chicago 
under  rendered  an  opin- 
ion that  this  fund 
was  not  legally  in 
existence  as  the 
or  City  Council  had 
not  created  it  by 
ordinance  as  re- 
quired by  act.  Pur- 
suant to  this  opin- 
ion money  in  fund 
was  distributed  to 
contributors  and 
fund  lapsed.  Mem- 
jers  automatically 
became  members 
of  fund  created  by 
act  of  1911. 


1  and  2.  $50  a  1.  Retirement,  aged  55,  after 
month.  20  years'  service,  having  con- 

3.  $50  a  month  tributed  for  20  years,  or  agree- 
for  not  more  than  ing  to  pay  the  deficiency  with 
2  years,  which  5  per  cent  interest  in  3  years, 
may  be  extended  payment  to  be  by  deductions 


Pepsions  not  to 
segin  before  July 
1.  1916. 


for   continued   dis- 
ability. 


rom  pension.  Contributions 
;o  be  continued  until  July  1, 
916,  by  those  who  retire  in 
the  interim. 

2.  Retirement  after  20  years 
service,  having  contributed  for 
20   years,    or    paying   the   de- 
ficiency   within    30    days,    and 
continued     contribution    until 
55. 

3.  Retirement    for    disability 
after    5    years'    service,    sub- 
sequent to  July  1,  1911. 


Adds: 

5.  Retirement,  aged  65,  after 
10  years'  service;  of  honorably 
discharged  Civil  War  veteran 
who  is  on  July  1,  1915,  an  em- 
ployee under  civil  service  par 
ticipating  in  the  fund,  on 
agreeing  to  pay  sum  by  which 
iis  contributions  fall  short  ol 
20  years'  contribution,  to  be 
deducted  from  pension  by  in- 
stallments of  $10  a  month. 


Gives  credit,  as  to  time,  for 
previous  service  of  employees 
who  may  be  transferred  to 
Chicago  by  consolidation  oi 
local  governments. 


Absence  from 
duty  other  than 
suspension  or  for 
discharge  to  count 
as  time  of  service. 


228 


PUBLIC  SCHOOL 


Reference 

Sources  of  revenue. 

to  legisla- 

Beneficiaries. 

Management. 

tion. 

Employees. 

Other  sources. 

L    1895, 

Public  school  em- 

B ard    c  m  o    d    of    mem 

Deduction 

p.'  312.  ' 

ployees  and  teach- 

bers of  board  of  education, 

from      salaries, 

ers  in  cities  of 
over  100,000. 

school  superintendent,  and 
2  representatives  selected  by 

not    to    exceed 
1  per  cent. 

teachers  and  employees. 

Amcnci6(l 
L.  1901, 
p.  300. 

Supersed- 
ed as  to 
employees 
by  L.  1903, 
p.  309. 

Pubilc  school  em- 
ployees who  ac- 
cept act  in  cities 
of  over  100,000,  in- 
cluding only  engi- 
neers, janitors  and 
>ffice  employees  of 
joard  of  educa- 

Board  of  trustees  to  consist 
of  president  and  secretary  of 
board  of  education  and  4 
contributing  employees  elect- 
ed by  contributing  employees, 
with  power  to  determine  ap- 
lications,  and  compromise 
claims  by  refunding  contribu- 

1.   Deduction 
from       salaries 
of       not       less 
than     $12     nor 
more   than    $48 
a   year. 

;ion,  earning  over 

tions. 

M9  a  month. 

Added  to 
L.  1907, 

r>     598 

Interest    on    pro- 
ceeds       of        city 
school    taxes,    not 

p.    O/o. 

to    exceed     1     per 

cent    of   taxes    for 

year,       shall       be 

added   to  teachers' 

and   to   employees' 

pension   funds. 

Added  to 
L.  1913, 
p.  583. 

Adds:     Board  of 
education  may   an- 
nually   appropriate 
and  pay  into  fund 

a   sum   which,   to- 

gether     with      the 

interest    on   school 

funds   paid   in   un- 

der   act    of    1907, 
shall     not     exceed 

double  the  amount 

deducted    for    that 

year       from       em« 

ployecs'  salaries. 

229 


EMPLOYEES. 


Refunds. 

Amount  of  pen- 
sion. 

Conditions  for  pension. 

Pensions  to 
survivors. 

Other  data. 

All  con- 

Half   salary,    not 

Retirement    after    service    in 

tributions 

;o    exceed    $000    a 

public    schools     of     20    years 

of  teachei 

year. 

for    women,    or    25    years    for 

or  em- 

men; of  which  three-fifths  has 

ployee  will- 

been within   the   municipality 

ing  to  con- 

where   the    board    of     educa- 

tinue in 

tion  has  jurisdiction. 

service 

and  not 

retained. 

Xcciciier     or    cm* 

ployee  by  written 

withdrawal  is  re- 

lieved from  further 

payments,  and 

loses  right  to  ben- 

efits. 

To   any 

employee 
who  resigns 
or    is    dis- 
missed af- 
ter 10  years, 
contribu- 
tions, half 
the   sums 
contributed. 

1    and    2.    Annu- 
ities  of   not  more 
than         $800        to 
>e   fixed   by  board 
n     proportion     to 
amounts      contrib- 
uted. 
3.  Such      portion 
of     the     full     an- 
nuity     as      board 
may   determine,  to 
be    paid    for    two 

1.  Retirement,  aged  55,  after 
10  years'   service. 
2.  Retirement        after        20 
years'     service    (on    60     days' 
notice.) 
3.  Retirement     for     disabil- 
ity after  10  years'  service  (on 
one      year's      notice,      unless 
waived.) 
4.  Death  of  contributor,  who 
has   never  been   a  beneficiary. 
5.  Retirement   under    act   of 

4.  Board  may 
pay  not  more 
;han  one  year's 
benefit  to  wid- 
ow, or  if  none, 
to  minor  chil- 
dren. 

Board  may  ex- 
empt any  em- 
ployees from  the 
act,  when  the  in- 
terests of  the  fund 
make  it  necessary. 
Contributions  of 
employees  under 
act  of  1895  trans- 
ferred to  fund  un- 
der this  act. 

years,    which    may 

1895. 

ie      extended      for 

continued            dis- 

ability. 

5.  Such      portion 

of  the  full  annuity 

as   board  may   de- 

termine. 

230 


EMPLOYEES  OF 


Reference 

Sources  of  revenue. 

to  legisla- 

Beneficiaries. 

Management. 

tion. 

Employees. 

Other  sources. 

L.  1905, 
p.  309. 

Contributing  em- 
ployees in  public 
.ibraries  organized 
under  act  of  March 
7,  1872,  in  cities  of 
over  100,000,  in- 

Board   of    trustees,    a    body 
corporate,    to    consist    of    the 
president  and  secretary  of  the 
board    of   directors   of    the    li- 
brary,      and       3       members 
elected     by     contributors,     of 

1.  Not       less 
than      $6      nor 
more    than    $48 
deducted    from 
salary          each 
year. 

2.  Such  moneys 
from  miscellaneous 
sources  as  directors 
of  library  deter- 
mine. 

cluding  all  persons 
in  employ  of  li- 

whom   1    shall    be    a   member 
of  the  board  of  directors  and 

brary  board  at  a 

2       shall      be      contributors. 

yearly  salary. 

Board  of  trustees  may  invest 
fund  at  its  discretion,  fix  the 

amount    of    contributions    and 

of  pensions,  within  the  limits 

of  the  act,  determine  applica- 

tions   for     pensions,     suspend 

pensions  for  cause,  and  com- 

promise  claims   by   surrender- 

ing contributions,  and,   in  in- 
terest   of    fund,     exempt   any 

employees  from  the  act. 

Amended 

L.  1907, 

p.  373. 

A  Ar\aA     +/\ 

If  consolidation  act  goes  in- 

AQQ60.   TO 

L.  1915, 

io    effect,    board    in    Chicago 

pp.  262, 

shall    consist    of    2    contrib- 

278. 
(Contin- 
gent on 

uting       employees,       and      3 
others  elected  as  city  council 
may    direct. 

adoption 

by 

voters.) 

231 


PUBLIC  LIBRARIES. 


Refunds. 


Amount  of  pen- 
sion. 


Conditions  for  pension. 


Pensions  to 
survivors. 


O:i:cr  -ia:a. 


Half 
amount 
paid  in,  to 
employee 
who  re- 
signs or  is 
dismissed. 


tlPDSSH 

proper-  er 


1.  Such 
or  annuity, 
donate   to 
contributed, 
board    may    deter- 
mine. 

2.  An  annuity. 

8.  Such  part  of 
the  established  an- 
nuity as  beard  may 
determine  for  2 


for 
disabil- 


I.  Retirement,  aged  50,  aft- 


4.  No: 


2.  Retirement        after 
years'    service    and    5 


years*  to 


8.  Retirement  for  disability 
after  10  years'  service  and 
contribution. 

4.  Death  in   service. 


ity. 


to  be- 


232 


EMPLOYEES  OF  HOUSES 


Reference 
to  legisla- 
tion. 

Beneficiaries. 

Management. 

Sources  of  revenue. 

Employees. 

Other  sources. 

L.  1911, 
p.  153. 

Contributing   em- 
loyees    at    yearly 

Board    of    trustees,    a   body 
orporate,  consisting  of  chair- 

Two   per 
cent   of  wages. 

1.  Two   per    cenl 
of       earnings       of 

alaries    of    houses 
f      correction      in 

man    of    board    of    inspectors, 
uperintendent     of    house    of 

louses    of    correc- 
;ion. 

ities   of    150,000. 

correction,     and     3     members 

elected    by    contributing    em- 

ployees,  of   whom   1   shall   be 

.    member    of    the    board    of 

nspection,      and     2     contrib- 

uting employees.     Board  may 

letermine      applications      for 

>ensions       and       compromise 

claims  by  returning  contribu- 

tions, and  subject  to  the  ap- 

>roval   of   a   majority   of   the 

sontributors,   invest  in   public 

bonds,    suspend    annuities    for 

cause,  and  in  interest  of  fund 

exempt    employees    from    the 

act.    Fund    to   be    in   custody 

of  city  treasurer. 

Revised 

Contributing  em- 

Substitutes   as    member    of 

1.  Increases        ! 

L.  1915, 
p.  465. 

ployees    of    houses 
f      correction      in 
ities      of      150,000 

>ension    board    a    beneficiary 
elected     by    beneficiaries,     in 
>lace  of   the   member  of  the 

per  cent  to  3  per 
cent. 
Adds: 

mployed         under 
Civil    Service    Act, 

joard    of    inspection    elected 
>y   contributors. 

2.  Three   per  cen 
of   fines    and   costs 

or     appointed     be- 
ore  it  was  passed 
and       in       service 

for    violating    city 
ordinances  imposed 
on  persons  impris 

July    1,    1911,    ex- 

oned  in  houses  o: 

ept        temporary, 

correction  for  non 

probationary      and 

payment    thereof. 

50-day    employees, 

and  those  who  on 

July    1,    1915,    are 

over    50    and    have 

served  less  than  1( 

years. 

Added  to 

If  consolidation  act  goes  in* 

L.  1915, 

to    effect,    board    in    Chicago 

pp.  262-267. 
(Contin- 

shall  consist   of   5:    2   to   be 
contributing   employees,    3   to 

gent  on 
adoption 

be     elected    as    city     council 
shall    direct. 

by 

voters.) 

• 

233 


OF  CORRECTION. 


Refunds. 

Amount  of  pen- 
sion. 

Conditions  for  pension. 

Pensions  to 
survivors. 

Other  data. 

Half 

1,  2  and  3.    $480 

1.  Retirement,  aged  50,  aft- 

1,  2   and    3 

City       Treasurer 

amount 
paid  in,  on 
dismissal 
or  resigna- 
tion after  3 

a   year   unless   an- 
nuities are  reduced 
by  the  board. 

er  20  years'  service,  and  pay- 
ment   of    20    years'    contribu- 
tions,   or,    for    service    before 
act  is  in  force,  of  a  sum  equal 
thereto.      Pension   not    to   be- 

$480    a     year 
unless        annu- 
ities     are      re- 
duced   by    the 
board,              to 

may  pay  pensions 
pro  rata,  if  fund 
insufficient  to  pay 
in  full.  Contribu- 
tors may  withdraw 

years'  serv- 

gin before  July  1,  1918. 

widow,       while 

'rom  further  contri- 

ice. 

2.  Retirement    for     continu- 
ing   disability    after    3    years' 
contributions. 
3.  Death  in  service. 

unmarried,      01 
children      unti 
youngest    chile 
reaches    18,    or 

bution  and  partici- 
pation. 

to     mother    of 

deceased. 

1.  $800  a  year. 
2     and     3.    Not 
over    1600    a    year. 

1.  Omits  requirement   as   to 
age. 
Adds: 

1.  Not       over 
$600  a  year  to 
widow,       while 

4.  Widows   and   children   re- 

unmarried,     ii 

ceiving  annuities  under  act  of 

married    before 

1911. 

retirement    and 

5    years    before 

death,     or     to 

children,    other 

than      adopted, 

until     the 

youngest 

reaches    16,    or 

to     mother     oi 

deceased. 

2  and  3.    Not 

over      $600      a 

year  to  widow, 

while      unmar- 

ried,    if     mar- 

ried     5      years 

before       death, 

or   to    children 

and  mother,  as 

ab  3ve. 

4.  Increased 

annuities       not 

over  $«00. 

v 

234 


PUBLIC  SCHOOL 


Reference 

Sources  of  revenue. 

to  legisla- 
tion. 

Beneficiaries, 

Manag-ement. 

Employees. 

Other  sources. 

L.  1895, 
p.  312. 

Public         schoo 
teachers    and    -em 
ployees     in     citie 
of   over   100,000. 

Board  composed  of  mem 
bers  of  board  of  education 
school  superintendent,  anc 
2  representatives  selected  bj 

Deduction 
from      salaries 
not    to    excee 
1  per  cent. 

teachers  and  employees. 

Amended 

L.  1901, 
p.  300. 

Added  to  by 
L.  1907, 

r»      KQQ 

Interest    on    pro- 
ceeds of  city  school 

p.  o/o. 

taxes,    not   to    ex- 

ceed 1  per  cent  of 

axes      for      year, 

hall  be   added   to 

eachers'     and     to 

mployeea'   pension 

undi. 

Super- 
seded as  to 
teachers  by 
L.  1907, 
p.  529. 

Public  school 
eachers    in    cities 
of  over  100,000  who 
are  employed  here- 
after    or     become 
contributors    with- 
in   6    months,    and 
persons  entitled  to 

Board  of  trustees  composed 
f  the  secretary  of  the  board 
of    education,    2    members    of 
tie       board       of       education 
lected    by    it,    and    8    teach- 
rs     elected    by     contributing 
;eachers. 
Suits    shall   be   in   name   o 

Yearly  deduc- 
ions  from  sal- 
ries   of   teach- 
ers hereafter 
employed         or 
who     elect     to 
contribute,    ac- 
cording  to   the 

1.  Other         pay- 
ments into  fund  ac- 
ording  to  law  (see 
L.      1907,     p.     528, 
sup.) 

pensions  under  acl 

>oard  of  education  for  use  o: 

number     of 

of  1895. 

oard  of  trustees. 

years   each  has 

taught,    as   fol- 

lows: 

a.  Those  who 

have         taught 

not  more  than 

5  years,   $5. 

b.  5-10  years, 

$10. 

c.  10-15  years, 

$15. 

d.  More    than 

15  years,  $30. 

Revised 

Add*: 

L.  1909, 

2.  Interest         on 

pp.  342, 
384-388. 

und. 

235 


TEACHERS. 

Refunds. 

Amount  of  pen- 
sion. 

Conditions  for  pension. 

Pensions  to 
survivors. 

Other  data. 

All  con- 

Half   salary,    not 

Retirement   after   service    in 

tributions 

to  exceed  $600  a 

public  schools  of  20  years  for 

kf  tcach- 

year. 

women   or   25  years   for   men; 

ler  or  em- 

of  which  three-fifths  has  been 

nlovoo 
billing  to 

within  the  municipality  where 
the    board    of    education    has 

krontinue 

jurisdiction. 

bmd  not 

[retained. 

T63.ch6r    or    cm- 

ployee    by    written 

withdrawal    is    re- 

lieved from  further 

payments  and  loses 

right  to  benefits. 

1.  To' 
teachers 
willing  to 
continue 
and  not 
retained, 
all  amounts 
contrib- 

I. $400  a  year. 
2.  [Such    propor- 
tion of  $400  a  year 
as        contributions 
made   bear  to   full 
contributions        for 
25     years,     (i.     e. 
$450.) 

1.  Retirement     after     teach- 
ing   25    years    in    the    public 
schools,  three-fifths  thereof  in 
schools   of  the  city,   and  con- 
tributing   for    25    years    under 
this  act   or   act  of   1895,  with 
right  for  period   of  past  serv- 
ice   to    pay    the   contributions 

Pensions  may  be 
reduced    pro    rata, 
if  fund  insufficient. 
Transfers     to     this 
fund  teachers'  pen- 
sion    funds     under 
act   of   1895. 

uted. 
2.  To 

3.  Such  propor- 
tion oi  $400  a  year 

that  would  have  been  payable 
under  this  act  with  4  per  cent 

teachers 
who  volun- 

as length  of  serv- 
ice bears  to  25 

interest   from   the   times   pay- 
ments would  have  been  made. 

tarily  retire 
before  more 

years,  less  $30  a 
year,  as  additional 

2.  Retirement  for  permanent 
disability     after    teaching     15 

than  15 
years,  half 
the 

contribution  until 
;otal  contribution 
reaches  $450. 

years    in    the    public    schools, 
ihree-flfths   thereof   in   schools 
of   the  city,   and  contributing 

amounts 

for   15   years   as   above. 

contrib- 

3. Retirement    under    act    of 

uted. 

1895  with  right  to  pension. 

Omits  3. 

Omits     provision 

that  pensions  may 

be      reduced      pro 

rata  if  fund  insuf- 

ficient. 

—16  PL 


236 


PUBLIC  SCHOOL 

Sources  of  revenue. 

Reference 

to  legisla- 

Beneficiaries. 

Management. 

tion. 

Employees. 

Other  sources. 

A   TY^S\fl/3s%,3 

Extends    time    to 

3.  Empowers 

Amended 
and  added 

become        contrib- 

board of  education 

to  L.  1911, 

utor     to     July     1, 

to  add  to  fund  an- 

pp. 511,  512. 

1912,  and  for  form- 
er          contributors 

nually     a     sum     of 
public            money, 

who      have      with- 

which         together 

drawn,      and      are 

with     interest     on 

lereafter        re-em- 

school    funds     re- 

ployed,  to   a   year 

ceived     under     act 

from    time    of    re- 

of  1907,  will  equal 

employment. 

the     amount     con- 

tributed    for     that 

year  from  teachers' 

salaries. 

Added  to 

Extends   time   to 

Substitutes       chairman       of 

Increases 

3.  Requires  board 

and 

jecome       contribu- 

inance   committee    of    board 

contributions 

of  education  to  add 

amended 

tor     to     July      1, 

of    education,    as    member    of 

from     teachers' 

to  fund  annually  a 

L.  1913, 

1916. 

>ension  board   in  lieu   of   sec- 

salaries   by    20 

sum       of       public 

pp.  593,  594. 

retary   of   board   of    education. 

per  cent. 

money     which     to- 

Provides   for    a    primary   elec- 

gether    with    inter- 

;ion   to    nominate    candidates 

est,  as  above,  will 

to  be  elected  to  pension  board 

equal    the    amount 

from   teachers. 

contributed       from 

teachers'      salaries, 

and  empowers  them 

to   add  an   amount 

which    will    double 

it. 

L.  1911. 
p.  513. 

Public    school 
eachers     hereafter 
employed    or    who 
elect     to     contrib- 

The treasurer  of  the  district 
shall    hold    the    pension    fund 
subject   to  the  control  of   the 
>oard     of    education.        There 

1.  Yearly    de- 
luctions      from 
salaries      of 
;eachers      here- 

1. Interest         on 
pension  fund. 
2.  Interest  on  dis- 
trict funds,  wheth- 

ute, in  districts  of 

shall  be   a   board    of   manage- 

after   employed 

er    for    educational 

1,000      to       100,000 

ment,    which    shall   by   resolu- 

or  who  elect  to 

or    building    pur- 

not    governed     by 
special   acts,   where 

;ion  declare  when  a  person  is 
entitled    to     a    pension.     The 

contribute,     ac- 
cording  to    the 

poses. 

)oard      of      educa- 

)oard     of     management     shall 

number     of 

;ion    establishes    a 

consist    of    3    or    9    members, 

years   each  has 

oension  fund. 

one-third   elected  by  board   of 

taught,    as    fol- 

education   from    its    members, 

lows: 

rwo-thirds    by     teachers    from 

a.  Those  who 

;heir   number.     The   board   of 

have   taught 

education  shall  determine  the 

not   more   than 

number  of  members  and  their 

5  years,   $5. 

terms.      Suits    to    be    in    the 

b.  5-10    years, 

name   of   the  board  of   educa- 

$10. 

tion    for   use    of    the    pension 

c.  10-15  years, 

and  retirement   fund. 

$15. 

d.  Over      15 

years,    $30. 

L.  1911, 
pp.  513,  518, 
§127n. 

Public         school 
teachers      in      dis- 
tricts      of       1,000- 
100,000  not   govern- 
ed by  special  acts, 
where  there  is  noi 
enough    revenue    to 

Such        revenues 
as  may  be  devoted 
to   the   purpose   by 
the    directors    of    a 
district    or    by    di- 
rect   appropriation 
by  a  town. 

maintain    fund    un- 

der      above       pro- 

visions, and  school 

district    by    major- 

ity vote  establishes 

fund     herein     pro- 

vided for. 

237 


TEACHERS— Continued. 


Refunds. 

Amount  of  pen- 
sion. 

Conditions  for  pension. 

Pensions  to 
survivors. 

Other  data. 

1    and   2.  Requires  that  the 

Iree-flfth      service      in      the 

chools    of    the    city    be    the 

ast  service  before  retirement. 

Restores      3,      which      was 

omitted    in    the    revision    of 

909. 

1.  To 

teachers 

1.  Annuity       no1 
;o   exceed   $400. 

1.  Retirement  after  teaching 
25  years  in  the  public  schools 

willing  to 

2.  Such      propor- 

three-fifths  thereof  in  the  dis- 

continue 
in  service 

ion     of    full     an 
nuity    of    $400    as 

;rict,   and   contributing  for  25 
'ears  to  the  fund,  with  righ 

and  not 

contributions  made 

or  period   of   past   service   to 

retained, 

>ear    to    full    con 

pay     the     contributions     tha 

all  amounts 

tnb.ition      for      25 

would   have   been  payable  un 

contrib- 

years. 

der  this  act  with  4  per  cent 

uted. 

interest    from    the    time    pay 

2.  To 

ments  would  have  been  made 

teachers 

2.  Retirement  for  permanen 

who  volun- 
tarily re- 

disability,   after    teaching    15 
years    in    the    public    schools 

tire  before 

ihree-fifths  thereof  in  the  dis 

more  than 

trict,   and  contributing  for  15 

15  years, 

years,    with   right   as   to   pas 

one-half 

services  as  above. 

amounts 

contributed 

Annuity    not    to 
exceed    half    salary 

Retirement,    aged    50,    afte 
25  years  of  faithful  service. 

at    retirement    no 

$400. 

238 


PUBLIC  SCHOOL 


Reference 

Sources  of  revenue. 

to  legisla- 

Beneficiaries. 

Management. 

tion. 

Employees. 

Other  sources. 

L.  1913, 
p.  598. 

Public         school 
teachers,    including 

Enacts  provisions  cf  L.  1911, 
p.  513,  for  districts  not  gov- 

Enacts      pro 
visions     of     L 

Enacts  provisions 
of  L.   1911,  p.   513, 

superintendents 

erned  by  special  acts. 

1911,  p.  513,  for 

for     districts     not 

and    principals,    in 
districts    of    10,000- 

districts        no 
governed         by 

governed  by  special 
acts,  and  adds: 

100,000        governed 

special  acts. 

3.  Interest         on 

by  special  acts,  in- 

proceeds   or'     sales 

cluding   Peoria. 

of  school  lands. 

Amended 

A  A  A  't  • 

L.1915, 

/lads  . 
4.  In           Peoria 

p.  648. 

county,  a  sum   an- 

nually     set      aside 

from     State     com- 

mon    scnool     fund 

equal  to  one  tenth 

mill  on  the  dollar 

of    assessed    valua- 

tion     of      taxable 

property      in      the 

district. 

L    1913 

Public         school 

Enacts  provisions  of  L.  1911, 

p.  598,  §14. 

teachers,    including 

pp.  513,  516,  §127n. 

superintendents 

and    principals,    in 

districts    of    10,000- 

100,000  governed  by 

special  acts  where 

here  is  not  enough 

reyenue    to    main- 

tain     fund      under 

above       provisions, 

and  school  district 

by     majority     vote 
establishes        fund 

lerein         provided 

'or. 

Revised 
(except  as 
to  Chicago 
and  Pe- 
oria), 
L.  1915, 
p.  649. 

Public         school 
teachers,     assistant 
eachers,      teacher- 
secretaries,     super- 
visors,     principals, 
superintendents 
and     assistant    su- 
perintendents,    ex- 
cept  in  cities  and 
districts      of     over 
'5,000  by  census  of 
1910,    already    hav- 
ng   pension   funds, 
hereafter  employed 
or  who  before  Sep- 

"Board   of    Trustees   of   the 
Illinois  Teachers'  Pension  and 
Retirement  Fund,"  to  consist 
of    Superintendent     of    Public 
Instruction,     State     Treasurer, 
and     3     contributors     or     an- 
nuitants   elected    by    contribu- 
;ors  and  annuitants  by  ballot 
>y  mail,  from  candidates  nom- 
nated  by  petition. 
Board,  though  not  a  corpora- 
ion,  may  sue  and  be  sued  by 
ts   name.     School   authorities 
n  each  district  to  retain  from 
salaries    the    sums    prescribed 

Monthly     de- 
ductions   for 
the     first     five 
months      of 
teaching     in 
each  year  fiom 
salaries      of 
teachers     here- 
after   employed 
or  who  elect  to 
contribute,    ac- 
cording  to   the 
number            of 
years  each  has 
taught    as    fol- 

A   sum    annually 
set      aside      from 
State      common 
school    fund    equal 
to    one-tenth    mill 
on  the  dollar  of  as- 
sessed     value      of 
taxable        property 
in    district. 

tember      1,       1920, 

and  transmit  them  yearly  to 

lows: 

elect     to  ,   become 

State  Treasurer. 

a.  Those  who 

contributors       and 

have     taught 

annuitants       under 

not  more   than 

>revious  funds. 

10  years,  $1. 
b.  10-15  years, 

$2. 

c.  15-25  years, 

16. 

239 


TEACHERS— Concluded. 


Refunds. 

Amount  of  pen- 
sion. 

Conditions  for  pension. 

Pensions  to 
survivors. 

Other  data. 

Enacts 
provisions 
of  L.  1911, 

Validates  pen- 
sions granted  and 
funds  established 

p.  513,  for 

under  color  of  L. 

districts 

1911,  p.  513. 

not  gov- 

erned by 

special 

acts. 

Half 
amount 
paid  in,  on 
ceasing  to 
teach  be- 
fore time 
of  service 
exceeds  15 
years, 
amount  re- 
funded to 
be  returned 
with  4  per 
cent  inter- 
est, if  re- 
employed. 

1.  $400  a  year. 
2.  $16  a  year  for 
each    year    of    ser- 
vice,    not     to     ex- 
ceed   $400    a    year. 
3.  Pensions        as 
above. 

1.  Retirement,  aged  50,  aft- 
er 25  years'  service  in  public 
schools   of   U.    S.,   three-fifths 
in  Illinois,  having  contributed 
$400  or   paying   the   deficiency 
with  4  per  cent  interest.    One 
year  on   leave   of  absence   for 
professional     preparation    may 
be  counted  in  time  of  service. 
2.  Retirement   for    disability 
after  15  years'  servce  in  pub- 
lic schools  of  U.  S.,  of  which 
three-fifths  is  in  Illinois,  hav- 
ing  contributed    $400   or   pay- 
ing the  deficiency  with  4  per 
cent   interest. 
3.  Being      annuitant      under 

Transfers  to  this 
fund            teachers' 
funds    already    es- 
tablished. 
Pensions           are 
suspended    if    pen- 
sioner          resumes 
teacning   in   public 
schools. 

teachers'   fund   already  *stab- 

lished. 

241 


APPENDIX  B. 

TABULAR   DIGEST   OF  PENSION    LAWS    IN    FORCE    IN 
ILLINOIS,  JANUARY  1,  1916. 

NOTE  1. — Act  of  1915,  under  which  policemen  in  employ  of  Boards  of  Park  Com- 
missioners are  beneficiaries,  to  be  in  force  and  effect,  requires  consent  of  Board 
of  Park  Commissioners.  Such  consent  has  not  been  given  as  yet  by  any  Board. 
(August  1,  1916.) 

NOTE  2. — Act  under  which  fire  insurance  patrolmen  In  employ  of  Boards  of 
Underwriters  in  cities  of  more  than  50,000  inhabitants  are  beneficiaries,  does  not 
provide  for  the  expenditure  of  any  public  moneys. 

NOTE  3. — Act  under  which  officers  and  employees  of  counties  of  more  than 
150,000  inhabitants  are  beneficiaries,  was  declared  invalid  by  Judge  Charles .  Fo ell 
in  the  Superior  Court  of  Cook  County  on  August  2,  1916,  on  the  ground  that  It 
includes  county  officers  who  are  not  under  civil  service. 

INDEX  TO  APPENDIX  B. 

Beneficiaries.  Pages. 

Firemen  in  cities  of  more  than  5,000  inhabitants 242  to  247  inclusive. 

Policemen  in  cities  of  more  than  200,000  inhabitants 242  to  247  inclusive. 

Policemen  in  cities  of  50,000  or  more  inhabitants 242  to  247  inclusive. 

Policemen    in    cities    of   not   less    than    9,000    nor   more    than 

50,000    inhabitants    242  to  247  inclusive. 

Policemen  in  employ  of  Boards  of  Park  Commissioners  (Act 

of  1913 )  248  to  253  inclusive. 

Policement  in  employ  of  Boards  of  Park  Commissioners  (Act 

of  1915)  248  to  253  inclusive. 

Fire  insurance  patrolmen  in  employ  of  Boards  of  Under- 
writers in  cities  of  more  than  50,000  inhabitants 248  to  253  inclusive. 

Officers  and  employees  of  counties  of  more  than  150,000  in- 
habitants    248  to  253  inclusive. 

Employees  in  cities  of  more  than  100,000  inhabitants 254  to  259  inclusive. 

Employees  of  Boards  of  Education  in  cities  of  more  than 

100,000  inhabitants,  who  are  engineers,  janitors  or  office 

employees,  earning  over  $49.00  per  month 254  to  259  inclusive. 

Employees  of  Public  Library  Boards  in  cities  of  more  than 

100,000  inhabitants  254  to  259  inclusive. 

Employees  of  Houses  of  Correction  in  cities  of  more  than 

150,000   inhabitants    254  to  259  inclusive. 

Public  school  teachers,  except  those  in  cities  and  school  dis- 
tricts of  more  than  65,000  inhabitants  where  teachers' 
pension  funds  were  in  operation  July  1,  1915 260  to  265  inclusive. 

Public  school  teachers  in  cities  of  more  than  100,000  inhabi- 
tants    260  to  265  inclusive. 

Public  school  teachers  in  school  districts  of  not  less  than 

10,000  nor  more  than.  100, 000  inhabitants 260  to  265  inclusive. 


242 


TABULAR    DIGEST    OF    PENSION    LAWS 


Laws. 


Beneficiaries. 


Management. , 


Act  approved,  June 
29,  1915.  In  force,  July 
1,  1915.  Laws  of  HI., 
1915,  p.  292. 


Firemen  in  cities  of 
more     than     5,000     in- 
abitants. 

(Participation     com- 
pulsory.) 


Act  approved,  June 
29,  1915.  In  force,  July 
1,  1915.  Laws  of  HI., 
1915,  p.  304. 


Policemen  in  citiei 
of  more  than  200,000 
inhabitants. 

(Participation 
pulsory.) 


Act  approved,  April 
29,  1887.  In  force,  July 
1,  1887.  As  amended, 
June  13,  1913.  In  force, 
July  1.  1913.  Kurd, 
1913,  p.  378,  par.  391. 


Act  approved,  June 
14,  1909.  In  force,  July 
1,  1909.  As  amended, 
June  27,  1913.  In 
force,  July  1,  1913. 
Hurd,  1913,  p.  383,  par. 
402(a). 


Board  of  eight  trustees:  In  cities,  villages  or  in- 
orporated  towns  where  there  are  such  officers,  the 
treasurer,  clerk,  marshal  or  chief  officer  of  fire 
department,  and  comptroller  are  ex  officio  members 
Where  there  is  no  comptroller,  the  mayor  of  th< 
city  is  substituted.  In  other  villages  or  incor 
oorated  towns,  the  president  of  the  board  of  trus- 
ses of  such  village  or  town,  the  clerk  and  attor- 
ney of  such  village  or  town,  and  chief  officer  o: 
fire  department  are  ex  officio  members.  [§2.] 

In  all  cities,  villages  and  towns,  three  of  the 
active  firemen,  elected  by  the  active  force,  anc 
jne  from  the  pensioners  elected  by  retired  fire 
men,  each  for  a  term  of  2  years.  [§2.] 

Treasurer  of  city,  village  or  town  is  custodian 
of  fund.  [§9.] 

Board  of  five  trustees:  Three  residents  of  the 
county,  appointed  by  the  mayor  for  a  term  of 
3  years;  one  of  the  active  force  elected  by  the 


com-  active  force,  and  one  from  the  pensioners  elected 
jy  retired  policemen,  widows  of  deceased  pen- 
sioners who  are  pensioners,  and  guardians  of 
children  who  are  pensioners,  each  for  a  term  of  1 
year.  [§2.] 

Members  appointed  by  the  mayor  can  not  hold 
any  other  civil  office  or  position  during  the 
term.  [§2.] 

Treasurer  of  board  of  trustees  is  custodian  of 
fund.  [310.] 


Policemen  in  cities 
of  50,000  or  more  in- 
habitants. 

(Participation      com-  nate.) 
pulsory.) 


Policemen    in    citiet 
of  not  less  than  9,000  eity 
nor    more    than    50,000  for 
inhabitants. 

(Participation 
pulsory.) 


Board  of  five  trustees:  Three  residents  of  the 
county  in  which  city  is  located,  appointed  by 
the  mayor  for  terms  of  3  years.  (Terms  alter- 
[§2.] 

One  of  the  active  force  elected  by  the  active 
force;  one  pensioner  elected  by  retired  policemen, 
widows  of  deceased  pensioners  who  are  pension- 
ers, and  guardians  of  children  who  are  pension- 
ers, each  for  a  term  of  1  year.  [§2.] 

Members  appointed  by  the  mayor  can  not  hold 
any  elective  or  appointive  office  during  term. 

Treasurer  of  board  of  trustees  is  custodian  of 
fund.  [89.] 


Board     of     three     trustees:    Two     residents     of 
village    or    town,    appointed    by    the    mayor 
terms   of   2  years.     (Terms   alternate.)     One, 
either  of   active  force  or  a  pensioner,   elected  by 
com-  members    of    active    force    and    pensioners    for    a 
term   of   1   year.     [§2.] 

Treasurer  of   city,  village  or  town  is   custodian 
of   fund.     [811.1 


243 


IN  FORCE  IN  ILLINOIS  JANUARY  1,   191«. 

SOURCES  OF  REVENUE. 


From 
employees. 


From  other  sources. 


Limitations  of  pay- 
ments by  employees. 


Refunds. 


Not  to  ex- 
ceed 1  per 
cent  of  salar- 
ies.    [53.] 


Two  per  cent 
salaries. 
[§9J 


One  and  one- 
half  per  cent 
of  salaries,  not 
to    exceed 
\3  per  month. 
[§!.] 


One  per  cent 
of  salaries.  [§!.] 

One  per  cent 
of  pensions. 

at] 


Tax  le\y  of  not  to  exceed  three-tenths  of  a 
mill  on  the  dollar  on  all  taxable  property  of 
such  city,  village  or  town  for  a  period  of 
3  years  beginning  with  the  year  1915.  [§!.] 

One  per  cent  of  all  licenses,  excepting  those  of 
public  utilities.  All  fines  imposed  for  violations 
of  fire  ordinances,  enforcements  of  which  are 
under  supervision  of  fire  department.  [51.] 

Amounts  received  as  rewards,  gifts,  etc., 
except  when  allowed  to  be  retained.  All 
fines  and  penalties  imposed  upon  firemen.  [54.] 

All  of  tax  or  license  fee  collected  from  for- 
eign fire  insurance  companies  may  be  appro- 
priated. [Act  approved,  June  29,  1915.  In 
force,  July  1,  1915.  Laws  of  111.,  1915,  p.  284.] 


Tax  levy  of  not  to  exceed  seven-tenths  of  a 
mill  on  the  dollar  on  all  taxable  property  of 
the    city    for   a    period    of    3   years    beginning  trance 
with  the  year   1915.      [§9.] 

Amounts  received  as  rewards,  gifts,  etc., 
except  when  allowed  to  be  retained  by  police- 
man or  given  to  endow  a  medal,  etc.  Amounts 
paid  for  special  details ;  fines  imposed  on 
policemen  for  violations  of  rules  and  regula- 
tions of  department,  and  moneys  received  from 
sale's  of  unclaimed  or  stolen  property.  [510.] 

In  event  tax  is  not  levied,  a  sum  sufficient 
for  the  purpose  of  this  act  shall  be  provided 
from  money  collected  for  licenses  of  all  kinds, 
excepting  those  of  public  utilities.  [§9.] 


Deductions  from  sal 
aries  from  date  of  en 
trance  into  service  to 
date  of  pension,  with- 
out regard  to  number 
of  years  of  service  01 
amounts  to  be  received 
as  pensions.  [§3.] 


No  pro- 
visions. 


Deductions  from  sal- 
aries from  date  of  en- 
into  service  to 
date  of  pension,  with- 
out regard  to  number 
of  years  of  service  or 
amounts  to  be  received 
as  pensions.  [§9.] 


No  pro- 
visions. 


Seventy -five  per  cent  of  dog  licenses.  Four 
per  cent  of  saloon  licenses.  [51.] 

All  money  collected  for  special  details  of  police 
officers.  Fines  imposed  upon  policemen  for  viola- 
tions of  rules  or  regulations  of  police  department 
Proceeds  from  sales  of  unclaimed,  lost  or  stolen 
property.  Twenty-five  per  cent  of  pawnbrokers', 
junk  dealers'  and  secondhand  dealers'  licenses. 
All  of  fines  for  carrying  concealed  weapons. 
One-half  of  costs  collected  for  violations 
of  city  ordinances.  All  rewards  given  or  paid  to 
policemen,  except  such  as  they  are  permitted  by 
chief  officers  to  retain.  Three  per  cent  (not  to 
exceed  $50,000  per  annum)  of  all  money  collected 
for  licenses  not  mentioned  in  this  act.  [51.] 

Seventy-five  per  cent  of  dog  licenses.  Two 
per  cent  of  saloon  licenses.  [§!.] 

All  money  collected  for  special  details  of 
police.  Ten  per  cent  of  all  fines  collected 
for  violations  of  city  ordinances.  All  fines 
imposed  upon  police  officers  for  violations  of 
rules  and  regulations  of  police  department. 
All  rewards  given  or  paid  to  police,  except 
those  excepted  by  the  board  of  trustees.  (This 
provision  does  not  apply  in  cities  which  have 
not  adopted  civil  service  in  police  depart- 
ments.) Ten  per  cent  of  all  licenses  not 
otherwise  mentioned  herein.  All  money  ac- 
cumulated for  a  police  pension  fund,  and  one 
half  of  all  money  accumulated  for  a  police 
and  firemen's  pension  fund  under  any  previ 
ous  legislation.  [51.] 

LIMITATION:  If  sum  total  of  sources  of  rev- 
enue in  a  particular  year  exceed  $2,500,  re- 
duction to  that  figure  shall  be  made  by 
scaling  the  amount  to  be  appropriated  from 
saloon  licenses.  [51.] 


Deductions  from  sal 
aries  from  date  of  en- 
trance into  service  to 
date  of  pension,  with- 
out regard  to  number 
of  years  of  service  or 
amounts  to  be  received 
as  pensions.  [51-] 


No  pro- 
visions. 


Deductions  from  sal-  No  pro- 
aries  from  date  of  en-  \risi 
trance  into  service  to 
date  of  pension,  with 
limitation  that  they 
shall  not  exceed  $1 
per  month;  and  de- 
ductions from  pen' 
sions  during  pension 
period,  without  limi 
tation.  HI.] 


244 


TABULAR    DIGEST    OF    PENSION    LAWS 
EMPLOYEES. 


Benefic- 
iaries. 

Conditions  for  pension. 

Amount  of 
pension 
per 
year. 

Provisions  for 
discontinuance 
of 
pension. 

Service. 

Age. 

Disability. 

Firemen 

Minimum   20 

No  re- 

Pension   awardec 

One-half    of 

Pension      terminates 

in  cities 
of  more 

years,   the   las 
two    of    which 

quirement. 

at    any    time    thai 
physical  or  menta! 

salary    at    date 
of     retirement. 

when  disability  ceases. 
(Member    shall    be   re- 

than 5,000 

must    be    con 

disability      renders 

[§§5  and  7.] 

stored    to    department 

inhabitants. 

tinuous.    [§7.] 

retirement        from 

at     former      rank      or 

active   service  nec- 

grade.)     [§5.] 

essary.     [§5.] 

Police- 

Minimum  20 

No  re- 

Pension   awardec 

Service   pen- 

If   retired    for    dis- 

men in 
cities  of 
more  than 
200,000 
inhabitants. 

years. 
Period  of 
service   in   city 
fire  department 
may  be  in- 
cluded in  .com- 

quirement. 

at  any  time  if  dis- 
ability occurs  when 
in,    and    in  ,  conse- 
quence of,  the  per- 
formance   of    duty. 
[§4.] 

sioners    receive 
one-half    salary 
of    rank   held 
for   1  year  im- 
mediately prior 
to      retirement 

ability:      Pension    ter- 
minates     when       dis- 
ability   ceases     (mem- 
ber   shall    be    restored 
to        department       at 
former      rank)       [§4]  ; 

puting  term  oi 
total  service. 

If   policeman   be- 
comes insane  after 

t§3]  ;       disabil- 
ity    pensioners 

or    if     pensioner    fails 
to   submit  to   physical 

[§§3  and  8.] 

10  years  of  service, 
a   pension   is   paid 
to   wife,    or   if   no 

receive    one- 
half   salary   at 
date  of  dis- 

examination      as       to 
fitness     for     duty,     or 
shall    disobey    require- 

wife then  to  child 
or    children    under 
18    years    of    age. 
[§§4  and  6.] 

ability,  —  both 
with    minimum 
of  $600  and 
maximum    of 
$900.    [§§3    and 

ments    of   board    relat- 
ing  thereto.      [§6.] 
If   retired   for   either 
service    or    disability: 
Pension    terminates    if 

4.] 

pensioner   is    convicted 

of   felony,    or   becomes 

a    habitual     drunkard, 

or    nonresident    of    the 

United   States.     t§6.] 

Police 

As  in  case  of 

No  re- 

As    in     case     of 

As  in  case  of 

As    in    case   of    Chi- 

men in 

Chicago  police- 

quirement. 

Chicago    policemen 

Chicago  police- 

cago policemen  above. 

cities  of 

men   above. 

above.    [§§4  and  6.] 

men    above. 

[§§4,  7  and  8.] 

50,000  or 

[§3.] 

[§§3  and  4.] 

more  in- 

habitants. 

Police- 
men in 
cities  of 

Minimum   20 
years.     [§3.] 

Minimum 
50  years. 
[§3.] 

Pension    awarded 
at     any     time     if 
disability       occurs 
when    in,    and    in 

Service   pen- 
sioners   receive 
one-half    salary 
of     rank     held 

If     retired    for     dis- 
ability :      Pension    ter- 
minates      when       dis- 
ability      ceases       and 

than  9,000 
nor  more 
than  50,000 
inhabitants. 

consequence  of,  per- 
formance of  duty. 
Pension     payable 
during     time     that 
officer  is  compelled 
;o      suspend      per- 
'ormance    of    duty 

for       1       year 
immediately 
prior  to  retire- 
ment [§3];  dis- 
ability pen- 
sioners   receive 
one-half    salary 

member    resumes    per- 
formance      of       duty. 
[§4.] 
In  all  cases,  if  pen- 
sioner is   convicted   of 
'elony,    or   becomes    a 
labitual    drunkard,    or 

or  retire  from   the 

at    date   of   re- 

becomes a  nonresident 

. 

force.     [§4.] 

tirement,  — 
both  with  max- 

of  this    State   without 
permission,  or  fails  to 

imum    of    $900. 

report      for      examina- 

[§4.] 

tion   as   to  fitness   for 

duty,  or  fails  to  obey 

. 

the      orders      of      the 

chief  of  police  or  the 

board    of    trustees    re- 

garding such  examina- 
tion.    [§9.] 

245 


IN  FORCE  IN  ILLINOIS  JANUARY  1,   1916. 

WIDOWS  OF  EMPLOYEES. 


Conditions  for  pension. 


Amount 

of 

pension 
per  year. 


Provisions  for  discontinuance 
of  pension. 


If    husband    dies    from    any    cauuse    while   in 
active  service,  or  if  husand  dies  during  retire- 
ment   after  20  years  of  service,   provided  mar- 
took    place  before  date    of     retirement. 
[86.] 


1.  If    husband    was    retired    on    service    pen- 
sion, provided  marriage  took  place  at  least  6 
months   before    date    of   retirement.      [§3.] 

2.  If  husband  was  retired  on  disability  pen- 
sion, provided  marriage  took  place  before  date 
of   retirement.      [§4.] 

3.  If    husband    lost    his    life    in    performance 
of    duty.     No   restriction   as   to   date   of   mar- 
riage.     [§5.] 

4.  If  husband  died  from  any   cause  after  10 
years  of  service,  provided  marriage  took  place 
at  least  2  months  before  date  of  death.   [§5.] 


$540.     [§6.] 


1.  Same      as 
was   paid    to 
husband.      [§3.] 

2.  Same      as 
was      paid     to 
husband.      [§4.] 

3.  Same    rate 
as   in  2  above 
[§5.] 

4.  Same 
rate    as    in    : 
above.     [§5.J 


In  all  cases,  pensions  terminate 
on    marriage.      [§6.] 


In  all  cases,  pensions  terminate 
on  marriage.     [§§3,   4   and  5.] 


1.  If    husband    was    retired    on    service    pen- 
sion, provided  marriage  took  place  before  date 
of  retirement.    [§§3   and  8.] 

2.  If     husband     was     retired     on     disability 
pension,    without    restriction    as    to    date    of 
marriage.      [§4.] 

3.  If    husband    lost   his    life    in    performance 
of    duty,    without    restriction    as    to    date    of 
marriage.      [§6.] 

4.  If    husband    died    from    any    cause    after 
10  years  or  more  of  service,  without  restriction 
as  to  date  of  marriage.     [§6.] 


1  and  2.  If  husband  was  pensioned  because 
of  service  or  disability,  provided  marriage 
took  place  before  retirement.  [§6.] 

3.  If    husband    lost    his   life    in    performance 
of    duty,    without    restriction    as    to    date    of 
marriage.     [§6.] 

4.  If  husband   died   from   any   cause  after   10 
years  of  service,  without  restriction  as  to  date 
of  marriage.    [§6.] 


1.  Same 
was      paid 


husband.      [§3.] 


In  all  cases,  pensions  terminate 
upon  marriage.     [§§4  and  6.] 
Pension  terminates  if  pensioner 


2.   Same      as  is   convicted  of   felony,   or  if   she 
becomes    a   habitual    drunkard    or 


was      paid      to 
husband.      [§4.] 

3.  Same    rate  States, 
as  in  2  above. 

[§8.] 

4.  Same 
rate    as    in    2 
above.    [§8.] 


1    and   2. 

Same  as  wa 
paid  to  hus- 
band. [§6.] 

3.  Same 
rate    as     in 
above.    [§8.] 

4.  Same 
rate    as    in 
above.    [56.] 


In  all  cases,  pensions  terminate 
upon  marriage.     [§§3  and  6.] 

Pension  terminates  if  pensioner 
is  convicted  of  felony  or  becomes 
a    habitual    drunkard,    or    if    she 
2  becomes     a    nonresident     of    this 
State  without  permission.    [§9.] 


nonresident 
[§8.] 


of     the     United 


246 


TABULAR    DIGEST    OF    PENSION    LAWS 
NATURAL    CHILD    OR    CHILDREN    OF    EMPLOYEES. 


Benefi- 
ciaries. 


Conditions  for  pension. 


Amount  of 

pension  per 

year. 


Provisions  for  discontinu 
ance  of  pension. 


Firemen 
in  cities 
of  more 
than  5,000 
inhabitants 


Police- 
men in 
cities  of 
more  than 
200,000  in- 
habitants. 


In  all  cases,  must  be  under  16 
years  of  age.  [§6.] 

Beneficiaries  are  children  of  serv- 
ice pensioners  or  of  members  who 
die  while  in  active  service.  [§6.] 


In    all    cases,    must    be    under 
years  of  age.     [§§3,  4  and  5.] 

Children  of  service  pensioner;  chil- 
dren of  disability  pensioner;  children 
of  policeman  killed  in  performance 
of  duty;  children  of  policeman  who 
dies  after  10  or  more  years  of  serv- 
ice: If  no  widow  survives  or  if  sur- 
viving widow  dies  or  marries.  [§§3, 
4  and  5.] 

Children  of  policeman  who 
insane    after    10    or    more    years 
service:     If  there  is  no  wife  and  he 
has  not  been  taken  out  of  the  State 
[§5.] 


In   all   cases, 

families   re- 
ceive    amounts  years 
equal     to     the 
pension        pro- 
vided    for     de- 

ceased      father  State 
or  the  mother, 
to    be    divided 
equally    among 
becomes  those   under  16 
Of  years     of     age. 
[§§3,  4  and  5.] 


Police- 
men in 
cities  of 
50,000  or 
more  in- 
habitants. 


As     in    Chicago    policemen,    above. 
[§§  3,  4  and  6.] 


Police- 
men in 
cities  of 
not  less 
than  9,000 
nor  more 
than  50,000 
inhabitants 


In  all  cases,  must  be  under  16 
years  of  age.  [§§3  and  6.] 

Children  of  service  or  disability 
pensioner:  If  no  widow  survives  or 
if  surviving  widow  dies  or  marries, 
provided  father  did  not  marry  after 
retirement.  [§§3  and  4.] 

Children  of  policeman  killed  in  per- 
formance of  duty;  children  of  police- 
man who  died  after  10  years  or 
more  of  service:  If  no  widow  sur- 
vives or  if  surviving  widow  dies  or 
marries.  [§6.] 


each 


$96    to 
child  if  mother  nates 


In    all    cases,    pension    termi- 
when    child    attains     16 

s     alive;     $180  years    of    age.      [§6.] 

to    each    child 

if      mother     is 

dead.      [§6.] 


In    all    cases,    pension    termi- 
nates    when    child    attains     16 

of  age.    [§§3,  4  and  5.] 
In    case   of    insane   policeman, 
pension    rights    cease    if   police 
man      is      taken      outside      the 
[§5.] 


As  in  Chi- 
cago police- 
men above. 
[§§3,  4  and  6.] 


In  all  cases,  pension  termi- 
nates when  child  attains  16 
years  of  age.  [§§3,  4  and  6.] 

In  case  of  insane  policeman, 
when  he  is  restored  to  reason 
or  taken  outside  of  the  State. 
[§6.] 

In  case  of  children  of  police- 
man killed  in  performance  of 
duty,  if  child  marries.  [§6.] 

Pension  terminates  if  child 
is  convicted  of  felony  or  be- 
comes a  habitual  drunkard,  or 
nonresident  of  the  United 
States.  [§8.] 


Same    as    in 
Chicago  police-  nates 
men          above. 
3   and   6.] 


In  all  cases,  pension  termi- 
when  child  attains  16 
years  of  age,  or  if  child  mar- 
ries. [§§3  and  6.] 

In  all  cases,  pension  termi- 
nates if  pensioner  is  convicted 
of  felony  or  becomes  a  habitual 
drunkard,  or  if  child  becoioes  a 
nonresident  of  the  State  with- 
out permission.  [§9.] 


247 


IN  FORCE  IN  ILLINOIS  JANUARY   1,   191«. 


Other  dependents  of  employees. 


Additional  data. 


If  member  dies  from  any  cause  while 
in  active  service  or  during  retirement 
after  20  years  of  service,  and  leaves 
no  widow  or  natural  children,  dependent 
father  and  mother  each  receive  $25  per 
month,  provided  member  was  sole  and 
only  support  of  such  parent  or  parents. 
[§6.] 


If  employee  becomes  insane  after  10 
years  of  service,  wife  receives  a  pension 
equal  to  one-half  of  husband's  salary  at 
date  of  insanity  with  minimum  of  $600 
and  maximum  of  $900.  [§5.] 

Pension  ceases  if  employee  is  taken 
outside  the  State.  [§5.] 


As  in   Chicago  policemen   above.     [§8.] 


When  employee  lost  life  in  performance 
of  duty,  or  was  pensioned  because  of  age 
and  length  of  service,  or  because  of  dis- 
ability, if  no  eligible  widow  or  child 
under  16  years  of  age  survives  pension  is 
payable  to  dependent  parents  if  such 
there  be,  provided  such  parent  does  not 
marry  subsequent  to  death  of  member, 
and  provided  member  did  not  marry 
subsequent  to  retirement.  [§6.] 

Pension  terminates  if  parent  is  con- 
victed of  felony  or  becomes  a  habitual 
drunkard,  or  if  parent  becomes  a  non- 
resident of  this  State  without  permission 
so  to  be.  [§9.] 


Repeals  act  approved  May  13,  1887,  and  all  amend- 
ments thereto.  [§14.] 

This  act  makes  no  provision  regulating  investment 
of  funds,  except  that  treasurer  shall  not  loan  or  de- 
posit unless  authorized  by  board.  [§11.] 


The  law  provides  for  actuarial  determination  of 
amount  needed  to  pay  pensions  currently  and  for 
maintenance  of  a  reserve  fund  in  accord  with  actuarial 
estimates  for  those  policemen  entering  the  service 
after  January  1.  1916. 

(NOTE.— The  law  is  silent  as  to  the  standards  to  be 
employed  in  making  an  actuarial  determination.) 

This  act  supersedes  the  act  passed  April  27,  1887, 
in  force  July  1,  1887,  as  subsequently  amended  re- 
garding cities  of  more  than  200,000  inhabitants.  [§7.] 

Funds  may  be  invested  in  Federal  bonds  or  State, 
county,  township  or  municipal  bonds  of  Illinois.  [§10.] 


All  policemen  retired  for  causes  other  than  20 
years  of  service,  must,  unless  excused,  report  monthly 
to  the  chief  Of  police,  and  may  be  assigned  to  perform 
emergency  duties,  and  must  perform  same.  They  shall 
have  no  claim  to  payment  for  performance  of  such 
duty.  [§7.] 

Benefits  shall  be  scaled  pro  rata,  if  money  in  fund 
is  insufficient  to  pay  benefits  in  full.  [§12.] 

Funds  may  be  invested  in  interest-bearing  bonds  of 
the  United  States,  State  of  Illinois,  or  any  county, 
township  or  municipal  corporation  in  the  State  of 
Illinois.  [§10.] 


Benefits  shall  be  scaled  pro  rata,  if  money  in  fund 
is  insufficient  to  pay  benefits  in  full.  [§12.] 

No  deductions  from  salaries  in  cities  that  have  not 
adopted  civil  service  in  their  police  departments.  !§!.] 

Investments  are  limited  to  bonds  of  the  United 
States,  State  of  Illinois  and  municipalities  in  Illinois. 
[§10.] 


248 


TABULAR    DIGEST    OF    PENSION    LAWS 


Laws. 


Beneficiaries. 


Management. 


Act  approved, 
May  23.  1913. 
Kurd,  1913,  p.  1807, 
par.  337. 


Policemen  in  em-  Board  of  five  trustees,  all  of  whom  must  be  residents 
ploy  of  boards  of  of  the  town  or  towns  comprising  park  district:  Three 
park  commission-  appointed  by  the  president  of  the  hoard  of  park  com- 
rs.  (Participation  missioners  for  terms  of  3  years  (one  appointed  each 
compulsory.)  year).  One  of  the  active  force  elected  by  the  active 

force,  and  one  retired  policeman  elected  by  retired  police- 
men,  widows  of  deceased  pensioners  and  guardians  of 
children  of  deceased  pensioners  who  are  pensioners,  each 
for  a  term  of  1  year.  [§2.] 

The    board    of    trustees    elects    one    of   its    members    as 
secretary  and  treasurer,  who  is  custodian  of  fund.    [§9.] 


Act 

June  29,  1915.  In 
force,  July  1,  1915. 
Laws  of  HI.,  1915, 
p.  542. 


Policemen  in  em- 
ploy of  boards  of 
park  commission- 
srs.  (Participation 
compulsory.) 


Board  of  five  trustees,  all  of  whom  must  be  residents 
of  the  town  or  towns  comprising  park  district:  Three, 
not  holding  any  appointive  or  elective  political  offices  or 
positions,  appointed  by  the  president  of  the  board  of 
park  commissioners,  for  terms  of  3  years  (one  ap« 
pointed  each  year).  One  of  the  active  force  elected  by 
the  active  force,  and  one  retired  policeman  elected  by 
retired  policemen,  widows  of  deceased  pensioners  and 
guardians  of  pensioned  children  of  deceased  pensioners, 
each  for  a  term  of  1  year.  [§2.] 

The  board  of  trustees  elects  one  of  its  members  as 
secretary  and  treasurer,  who  is  custodian  of  fund.  [§7.] 


Act  approved, 
June  24,  1895.  In 
force,  July  1,  1895. 
Kurd,  1913,  p.  393, 
par.  423, 


Act  approved, 
June  29,  1915.  In 
force,  July  1,  1915. 
Laws  of  111.,  1915, 
p.  342. 


Fire  insurance 
patrolmen  in  em-  tary 
ploy  of  boards  of 
underwriters  in 
cities  of  more  than 
50,000  inhabitants. 
Participation  com- 
pulsory.) 


Board  of  five  trustees,  composed  of  president,  secre- 
treasurer,  chairman  of  the  patrol  committee  and 
superintendent  or  chief  officer  of  the  fire  insurance  patrol 
of  the  board  of  underwriters.  [§!.] 

Treasurer  of  board  of  trustees  is  custodian  of  fund. 
[§9.] 


Officers  and  em 
ployees  of  counties 
of  more 
150,000  inhabitants. 
Participation  com- 
pulsory.) 


Board     of     five     trustees:       County     comptroller     and 
county   treasurer,    ex   offlcio.    Three    employees   for   terms 
than  of  3  years,  one  elected  each  year  by  employees.     [82.] 
County  treasurer  is  custodian  of  fund.     [§5.] 


249 


IN  FORCE  IN  ILLINOIS  JANUARY  I,  1918. 

SOURCES  OF  REVENUE. 


From  em- 
ployees. 


From  other  sources. 


Limitations  of  pay- 
ments by  employees. 


Refunds. 


One   and 
one-half 
per  cent  of 
salaries,  not 
to  exceed 
$3  per 
month.  [Jl.] 


Two  per 
cent  of 
salaries. 
08.] 


All  fines  and  penalties  imposed  upon 
persons  arrested  by  any  member  of  force. 
[§!.] 

All  rewards  paid  or  given  to  members, 
except  such  as  are  excepted  by  chief  offi- 
ers  of  force.  [§!.] 

All  fines  for  infraction  of  rules  and  regu- 
lations of  department.  [§!.] 


Tax  levy  on  each  dollar  of  taxable  prop- 
erty in  various  park  districts  for  a  period 
of  3  years  beginning  with  the  year 
1915  as  follows:  South  Park  (Chicago), 
one- twenty-fifth  of  a  mill;  West  Chicago 
Park,  one-tenth  of  a  mill;  Lincoln  Park 
(Chicago),  one-seventeenth  of  a  mill.  [§8.] 

All  rewards  paid  or  given  to  members, 
except  such  as  are  allowed  to  be  retained 
by  such  members.  [§9.] 


Deductions  from  salaries 
from  date  of  entrance  in- 
to service  to  date  of  pen- 
sion, without  regard  to 
number  of  years  of  serv- 
ice or  amounts  to  be  re- 
ceived as  pensions.  [§!.] 

Deductions  not  to  ex- 
ceed $3  per  month.  [§!.] 


Deductions  from  salaries 
from  date  of  entrance  in 
to  service  to  date  of  pen- 
ion,  without  regard  to 
number  of  years  of  serv- 
ice or  amounts  to  be  re- 
ceived as  pensions.  [§8.] 


No     pro- 
visions. 


No     pro- 
visions. 


Not  to 
exceed  one 
per  cent  of 
salaries. 
[52.] 


$2  per 
month. 
[51.] 


A  sum  not  in  excess  of  2  per  cent  of  all 
money    paid    to    the    treasurer    of    the    fire 
nsurance    patrol    by    insurance    companies  to 
for  support  of  said  patrol.     [§2.] 

AmoMnts  received  as  rewards,  gifts,  etc., 
except    when    allowed    to    be    retained    by 
patrolman   or   given   to   endow   a  medal 
other    competitive    award.      [53.] 


Deduction   from   salaries 
from  date  of  entrance  in- 
service  to  date  of  pen- 
sion,    without    regard     to 
number   of   years   of   serv 
ice  or  amounts  to  be   re- 
o'r  ceived   as   pensions.      [52.] 


No     pro- 
visions. 


Amounts  received  as  gifts,  etc.   [54.] 


Deductions  from  salaries 
from  date  of  entrance  in 
to  service  to  date  of  pen- 
sion, without  regard 
number  of  years  of  serv- 
ice or  amounts  to  be  re- 
ceived as  pensions.  [§!.] 


of 


In  case 
separation 
from  service 
to  on  account  of 
abolition  of 
position,  a  sum 
equal  to  full 
amount  de- 
ducted with 
interest  at  3 
per  cent  per 
annum.  [54.J 


250 


TABULAR    DIGEST    OP    PENSION    LAWS 
EMPLOYEES. 


Beneficiaries. 

Conditions  for  pension. 

Amount  of 
pension  per 
year. 

Provisions  for  dis- 
continuance of 
pension 

Service. 

Age. 

Disability. 

Policemen   in 

Minimum 

No  re- 

Pension   awardec 

Service    pen- 

If   retired     for     dis- 

employ     of 
boards   of  park 

20  years. 
[§3.] 

quirement. 

at  any  time  if  dis 
ability  occurs  while 

sioners  receive 
one-half  of  sal- 

ability:     Pension    ter- 
minates  when    disabil- 

commissioners. 
(Act    of    1913.) 

serving  as  a  police 
man.      [§4.] 

ary  of  rank 
held  for  one 

ity  ceases    [§4]  ;    or  if 
pensioner    fails    to   re- 

If policeman  be 

year  prior  to 

port    for     examination 

comes  insane  after 
10  years  of  service 

retirement 
[§3];    disability 

for    duty    or    disobeys 
an  order  so  to  report 

a   pension    is   pale 
to     widow     (wife) 
or  if  no  wife,  then 
to    child    or    chil- 
dren      under       1( 
years  of  age,  or  if 
none  such,  then  to 
father    or    mother. 

pensioners  re- 
ceive one-half  Of 
salary  at  date 
of  retirement, 
—  both  with 
minimum  of 
S600  and  maxi- 
mum of  $900. 

or   an   order   to  report 
for  duty.    [§8.] 
In  all  cases  pension 
terminates    upon    con- 
viction of  felony,  or  if 
pensioner    becomes    a 
habitual    drunkard    or 
nonresident      of      this 

[§6.] 

[§4.] 

State.     [§8.] 

Policemen   in 

Minimum 

Minimum 

Pension   awarded 

Same    as    in 

Same     as     in     park 

employ     of 
boards  of  park 

20  years. 
[§3.] 

50  years. 
[§3.] 

at  any  time  if  dis- 
ability occurs  while 

park          polic 
above.          [§§3 

police     above,     except 
that  residence   is   per- 

commissioners. 

serving    as    a    po- 

and 4.] 

mitted  in  any  part  of 

(Act    of    1915.) 

liceman.     [§4.] 

the      United       States. 

If  policeman  be- 

[§§4 and  8.] 

comes  insane  after 

10  years  of  service, 

a   pension   is   paid 

to   wife,    or   if   no 

wife,  then  to  child 

or    children.     [§5.] 

Fire       insur- 

Minimum 

Minimum 

Pension   awarded 

One-half       of 

No  provisions. 

ance         patrol- 
men in  employ 

12  years, 
ast  two 

50  years. 
[§7.] 

at     any     time     if 
physically  or  men- 

salary    at    date 
of    retirement. 

of     boards     of 

continuous. 

ally     permanently 

§§5  and  7.] 

underwriters  in 

[§7.] 

disabled  by  reason 

cities    of    more 

of  service  so  as  to 

than   50,000   in- 

ender     retirement 

habitants. 

necessary.     L§5.] 

OfBcers      and 

Minimum 

Minimum 

Pension    awarded 

1600.     [§4.] 

Pension      terminates 

employees       of 
counties          of 

20  years. 
[§7.] 

55  years. 
17.] 

it   any   time   after 
5   years   of  service  I 

when  disability  ceases. 

[§4.] 

more           than 

endered          subse- 

150,000   inhabi- 

quent   to    July    I, 

tants. 

915.     [§9.] 

251 


IN  FORCE  IN  ILLINOIS  JANUARY  1,  1918. 

WIDOWS  OF  EMPLOYEES. 


Conditions  for  pension. 


Amount  of 

pension  per 

year. 


Provisions  for  discontinu- 
ance of  pension. 


1  and  2.  If  husband  was  pensioned  because 
of  service  or  disability  incurred  as  a  result  of 
injuries  received  in  the  discharge  of  duty,  pro- 
vided marriage  took  place  before  retirement. 
[§§3  and  4.] 

I.  If  husband  lost  his  life  in  performance  of 
duty.  [§«.] 

4.  If  husband  died  after  10  or  more  years  of 
service.  [§6.] 


1.  If  husband  was  retired   on  service  pension, 
jrovided  marriage  took  place  at  least  6  months 
jefore   retirement.      [§3.] 

2.  If    husband   was   retired    on    disability   pen- 
sion,  provided   marriage   took  place   before   date 
of  retirement.      [§4.] 

3.  If  husband   lost  his   life  in  performance   of 
duty.     t§5.] 

4.  If   husband   lost   his   life   after   10   years   of 
service,    provided   marriage   took   place   at   least 
fi  months  before  date  of  death.   [§5.] 


If  husband  died  while  in  service  or  after  re- 
tirement on  pension  without  restriction  as  to 
date  of  marriage.  [§6.] 


No  provisions. 


1       and       2. 

Same  as  was 
paid  to  hus 
band.  [§§3  and 
4.] 

3.  Same 
rate    as     in 
above.    [§6.] 

4.  Same 
rate    as    in 
above.      [§6.] 


In  all  cases,  pensions  termi- 
nate upon  marriage.  [§§3  and 
o.J  ^ 

In  all  cases,  pensions  termi- 
nate upon  conviction  of  felony, 
or  if  pensioner  becomes  a 
habitual  drunkard  or  a  non- 
resident of  this  State.  [§8.] 


1.  Same       as 
was     paid      to 
husband.     [§3.] 

2.  Same      as 
was     paid      to 
husband.    [§4.] 

3.  Same 
rate    as    in 
above.  f§5.] 

4.  Same 
rate    as    in 
above.    [§5.] 


$360.      [§6.] 


In  all  cases,  pensions  termi- 
nate upon  marriage.  [§53,  4 
and  5.] 


In   all ,  cases,   pensions   termi- 
nate  upon  marriage.     [86.] 


No  pro- 
visions. 


No    provisions. 


—17  P  L 


TABULAR    DIGEST    OP    PENSION    LAWS 
NATURAL    CHILD    OR    CHILDREN    OF    EMPLOYEES. 


Beneficiaries. 

Conditions  for  pension. 

Amount  of 
pension  per 
year. 

Provisions  for  dis- 
continuance of 
pension. 

Policemen   in 
employ     of 
boards  of  park 
co  mmissioners. 
(Act  of   1913.) 


In   all  cases,   must  be   under   16  years 
f  age.     [§§3  and  6.] 

Children    of   service   or   disability   pen- 
sioner:    If  no  widow  survives  or  if  sur- 
iving  widow   dies   or   marries.    [§§3   and 
•J 

Children  of  policeman  killed  in  perform- 
ance of  duty:  If  no  widow  survives  or  if 
surviving  widow  dies  or  marries.  [§6.] 

Children  of  policeman  who   died   after 
10  years   of   service:     If   no   widow   sur- 
dves  or  if  surviving  widow  dies  or  mar-  and  6.] 
ries.     [§6.] 

If  father  becomes  insane  after  10  years 
of  service,  having  no  wife.  [§6J 


Policemen  in 
employ  of 
boards  of  park 
commissioners. 
(Act  of  1915.) 


Fire  insur- 
ance patrolmen 
in  employ  of 
boards  of  un- 
derwriters in 
cities  of  more 
than  50,000  in- 
habitants. 


Officers     and 
employees  of 
counties   of 
more      than 
150,000    inhabi 
tanta. 


In  all  cases,  In  all  cases,  pension 
amilies  receive  i  terminates  when  child 
amounts  equal  attains  16  years  of  age. 
to  the  pension  [§§3  and  6.] 
provided  for  Pension  terminates  up- 
deceased  father  on  marriage  in  all  cases 
or  the  mother  except  those  of  children 
divided  equally  of  service  pensioners. 


In  all  cases,  must  be  under  16  years 
of  age.  [§3,  4  and  5.] 

Children  of  service  pensioners:  If  no 
eligible  widow  survives  or  if  such  widow 
dies.  [§3.] 

Children  of  disability  pensioners:  If 
no  eligible  widow  survives  or  if  such 
widow  dies  or  marries.  [§4.] 

Children  of  policeman  killed  in  per- 
formance of  duty:  If  no  widow  survives 
or  if  surviving  widow  dies.  [§§3  and  5.] 

Children  of  policeman  who  died  after 
10  or  more  years  of  service:  If  no 
eligible  widow  survives  or  if  such  widow 
dies.  [§5.] 

Children  of  insane  policeman:  If  no 
wife  is  living  and  he  has  not  been  taken 
outside  the  State.  [§5.] 


In  all  cases,  must  be  under  16  years 
of  age.  [§6.] 

If  father  dies  while  in  service  or  dur- 
ing retirement  on  pension.  [§6.] 


No   provisions. 


among  those 
under  16  years 
of  age.  [§§3,  4 


As  in,  park 
police  above. 
[§§3,  4  and  5.] 


In  all  cases,  pension 
terminates  when  child 
attains  16  years  of  age. 
[§§3,  4  and  5.] 


$72.     [58.]. 


No  pro- 
visions. 


[§6.] 

In    all    cases,    pension 
terminates    if     child    is 
felony    or 
habitual 


convicted 
aecomes 
drunkard  or  a  non- 
resident of  this  State. 
[§8.] 


In  all  cases,  pension 
terminates  when  child 
attains  16  years  of  age. 
[§6.] 


No  provisions. 


253 


IN  FORCE  IN  ILLINOIS  JANUARY  1,  1916. 


Other  dependents  of  employees. 


Additional  data. 


If  there   be   no  widow  or  no   child 
or  children  under  16  years  of  age  of 
deceased  member,  then  his  father  or 
mother  receives  pension  provided  for 
widow  or  children.     [§§3  and  6.] 
If  member  becomes  insane  after  10 
ears    of    service,   wife    receives    pen- 
ion   equal   to   one-half    of   salary    of 
msband   at  date   of   insanity,   within 
he  limits  of  $600  and  $900.   [§€.] 


If  employee  becomes  insane  after  10 
ears  of  service,  wife  receives  a 
>ension  equal  to  one-half  of  hus- 
)and's  salary  at  date  of  insanity,  rot 
o  exceed  $900.  [§5.] 

Pension  ceases  if  such  employee  is 
taken  outside  of  the  State.  [§5.] 


Provisions   for  natural  children   ap- 
ly  also  to  adopted  children.     [?8.] 


No    provisions. 


Pensioners  other  than  service  pensioners  shall  report 
monthly  unless  excused  by  the  superintendent  of  police. 
They  may  be  assigned  to,  and  must  perform,  such  service 
as  commanding  officer  directs  and  shall  have  no  claim  for 
payment  for  such  duty.  [§7.] 

Funds  may  be  invested  in  bonds  of  the  United  States, 
State  of  Illinois  or  any  county,  township  or  municipal 
corporation  of  the  State  of  Illinois.  [§10.] 


The  law  provides  for  actuarial  determination  of  amount 
needed  to  pay  pensions  currently  and  for  maintenance  of  a 
reserve  fund  in  accord  with  actuarial  estimates  for  those 
policemen  entering  the  service  after  January  1,  1916.  [§8.] 

(NOTE. — The  law  is  silent  as  to  the  standards  to  be  em- 
ployed in  making  an  actuarial  determination.) 

Should  any  policeman  or  his  heirs  receive  any  compen- 
sation or  allowance  from  any  board  of  park  commissioners 
under,  or  in  pursuance  of,  the  laws  of  the  United  States, 
or  of  this  State,  now  or  hereafter  in  force,  the  pension 
herein  provided  shall  be  reduced  by  the  amount  of  such 
allowance  if  paid  in  installments,  or  if  payable  otherwise-, 
no  pension  shall  be  paid  to  such  policeman,  his  widow, 
child  or  children  until  such  time  as  pension  would  amount 
to  the  same  sum  had  it  been  paid  to  them.  [§6.] 

Funds  may  be  invested  in  bonds  of  the  United  States, 
or  State,  county,  township  or  municipal  bonds  of  Illinois. 
t§9.] 

To  be  in  force  and  effect  this  act  requires  consent  of 
board  of  park  commissioners  expressed  by  resolution  or 
otherwise,  which  must  be  recorded  in  the  office  of  the  re- 
corder  of  deeds  of  county.  [§11.] 


Funds   may   be   invested   in   securities   approved  by  the 
board   of  trustees.      [§4.] 


This  fund  includes  all  employees  of  a  county  except 
temporary  or  probationary  employees;  those  who  were  60 
or  more  years  of  age  on  July  1,  1915,  who  had  not 
served  the  county  for  at  least  10  years:  and  laborers  ex- 
cept such  as  apply  for  participation.  [§!.] 

Funds  may  be  invested  in  Federal,  State,  township  or 
municipal  bonds  issued  in  the  United  States.  [§4.] 


254 


TABULAR    DIGEST    OF    PENSION    LAWS 


Laws. 


Beneficiaries. 


Management. 


Act  approved, 
May  31,  1911.  In 
force,  July  1,  1911. 
Hurd,  1913,  p. 
483,  par.  741.  As 
amended,  June  29, 
1915.  In  force, 
July  1,  1915.  Laws 
of  m.,  1915,  pp. 
298  and  302. 


Act  approved, 
May  15,  1903.  In 
force,  July  1,  1903. 
Hurd,  1913,  p.  2255, 
par.  423  (a). 


Act  approved, 
May  12,  1905.  In 
force,  July  1,  1905. 
As  amended,  June 
3,  1907.  In  force, 
July  1,  1907.  Kurd, 
1913,  p.  1552,  par. 


Act  approved, 
June  29,  1915.  In 
force,  July  1,  1915. 
Laws  of  111.,  1915, 
p.  465. 


Employees  of 
cities  of  more 
han  100,000  in- 
habitants. (Par- 
icipation  compul- 
sory.) 


Employees  of 
boards  of  educa- 
tion in  cities  of 
more  than 
nhabitants,  who 
are  engineers,  janr 
itors  or  office  em 
ployees  earning 
over  $49  per  month 
(Participation  op 
tional.) 


Employees 
public 


library 


more    than    100,000 
nhabitants.      (Par 


ticipation 
al.) 


Board  of  five  trustees:  City  comptroller  and  city 
treasurer,  ex  officio.  Three  employees  elected  by  the 
employees  for  terms  of  3  years,  one  elected  each  year. 
[§2.] 

(Elective  trustees  can  not  hold  political  office  or  ap- 
pointment.) [§2.] 

City    treasurer   is    custodian    of    fund.      [55.] 


Board  of  six  trustees:  [§4.]  President  and  secretary 
of  board  of  education,  ex  officio.  Four  contributors 
elected  by  contributors  for  terms  of  2  years,  two  elected 
100,000  each  year.  [§5.] 

City  treasurer  is  custodian  of  fund.     [83.] 


Board    of    five    trustees:      President    and    secretary    of 
board    of    directors    of    library,     ex    officio.      One    other 


boards  in  cities  of  member    of    the    board    of    directors    elected    for    a    term 


option- 


of   1    year  by   contributors.     Two   contributing   employees 
elected  by  contributors,  each  for  a  term  of  2  years.    [§5.] 
City  treasurer  is  custodian  of  fund.     [§3.] 


Employees  of 
houses  of  correc- 
tion in  cities  of 
more  than 
nhabitants,  who 
are  employed  un- 
der Civil  Service 
Act,  or  appointed 
before  it  was 
ised  and  in 
service  July  1, 
1911,  except  tem- 
porary, probation- 
ary and  60-day  em- 
ployees, and  those 
who  on  July  1, 
1915,  are  50  or 
more  years  of  age 
and  have  served 
less  than  10  years. 
(Participation  op- 
tional.) 


Board    of    five    trustees:     Chairman    of    board    of     in- 
spectors  of   houses   of    correction    and    superintendent    of 
houses   of   correction,    ex   officio.    Two   contributors  elected' 
150,000  by  contributors  for  terms  of  2  years.     (Terms  alternate). 
One  beneficiary  elected  annually  by  pensioners.      [§4.] 
City  treasurer  is   custodian  of  fund.     [§3.] 


255 


IN  FORCE  IN  ILLINOIS  JANUARY  1,   1918. 

SOURCES   OF  REVENUE. 


From  em- 
ployees. 


From  other  sources. 


Limitations  of  payments 
by  employees. 


Refunds. 


City  appropriates  an  amount  equal 
to  sum  deducted  from  salaries  of 
employees  during  previous 
year,  for  a  period  of  2  years  begin- 
ning January  1,  1916.  (§1  as  amended. 
Laws  of  111.,  1915,  p.  298.) 

Amounts     received     as     gifts,     etc. 
[84.] 


Deductions  from  salaries 
from  date  of  entrance  into 
calendar  service  to  date  of  pension, 
without  regard  to  number  of 
years  of  service. 

If  retired  because  of  age 
and  service  before  the  sum 
of  $480  has  been  contrib- 
uted, the  balance  plus  5 
ser  cent  interest  is  de- 
lucted  from  pension  in  36 
equal  monthly  installments 
[87.] 


Board    of    education   has   power   to 
appropriate   double    the   sum   contrib- 
uted by  employees  each  year.    [Act  of  service 
June  27,  1913.     In  force,  July  1,  1913. 
Kurd,  1913,  p.  2235,  par.  278  (a).] 

[NOTK.— At  present,  board  and  em 
ployees  contribute  equal  amounts 
(Aug.  1,  1916.)] 


Such  moneys  from  miscellaneous 
sources  as  board  of  directors  of  li 
brary  may  determine.  [§!.] 
I  [NOTE.— At  present,  fund  receives  all 
!of  fines  collected  for  retention  of 
books  overtime.  (Aug.  1,  1916.)] 


Three  per  cent  of  gross  earnings  of 
houses  of  correction,  3  per  cent  of 
fines  nnd  costs  collected  for  violations  service 
of  city  ordinances  where  persons  have 
n  incarcerated  in  houses  of  correc- 
tion for  nonpayment  of  such  fines  and 
costs.  Both  of  these  sources  of  rev- 
enue for  a  period  of  3  years  only, 
beginning  with  the  year  1915.  [§!.] 

Amounts  received  in  gifts,  etc.   [§6.] 


Deductions  from  salaries 
from  date  of  entrance  into 
to  date  of  pension. 
[§10.] 

Minimum:  The  equivalent 
of  5  years'  contributions. 
[§9.] 


Deductions  from  salaries 
from  date  of  entrance  into 
service  to  date  of  pension. 
[§!.] 


Deductions    from    salaries 
rom   date   of   entrance   into 
to    date   of  pension, 
without    regard    to    number 
of  years   of   service.     [§!.] 


In  case  of  sepa- 
ration from  serv- 
ce  on  account  of 
abolition  of  posi- 
tion, a  sum  equal 
to  amount  contrib- 
uted. [§4.] 

In  case  of  death 
or  separation  from 
service  for  any 
cause  other  than 
that  above,  one- 
lalf  of  amount 
contributed.  [84.] 


One-half  of  sum 
contributed  if  em- 
ployee resigns  or 
is  dismissed  be- 
fore serving  10 
years.  [813.] 


One-half  of  sum 
contributed  if  em- 
ployee resigns  or 
s  dismissed.  [811.] 


One-half  of  the 
sum  contributed 
if  employee  re- 
signs or  is  dis- 
missed after  3  or 
more  years  of  con- 
tribution. [52.] 


256 


TABULAR  DIGEST  OF  PENSION  LAWS 
EMPLOYEES. 


Beneficiaries. 

Conditions  for  pension. 

Amount  of 
pension  per 
year. 

Provisions  for  dis- 
continuance of 
pension. 

Service. 

Agre. 

Disability. 

Employees   of 

Minimum     20 

Minimum 

Pension 

$600.    [§4.] 

Pension      terminates 

cities    of    inor<» 
than  100,000  in- 

years       except 
'hen  Civil  War 

55  years. 
[§7.] 

awarded  at  any 
;ime     after     5 

when  disability  ceases. 
[§9.] 

habitants. 

veterans.       [§§7 

years  of  service 

and    9^.] 

rendered  subse- 

quent   to    July 

1,  1911.     [§4.] 

Employees   of 

1.      Minimum 

1.  No  re- 

Pension 

Board           of 

Pension      terminates 

boards   of   edu- 
cation in  cities 

0  years.    [§11.] 

quirement. 

[§ii.] 

awarded  at  any 
time     after     10 

trustees    deter- 
mines    amount 

when  disability  ceases 
or  for  other  good  cause 

of    more     than 

2.      Minimum 

2.  Mini- 

years   of    serv- 

but      within 

as  board  of  trustees 

100,000     inhabi- 
tants,  who   are 

0    years.    [§7.] 

mum  55 
years.  [§7.] 

ce.  [§12.] 

maximum        of 
$600.    [§6.] 

shall  determine.  [§6.] 

engineers,  jani- 

If   pensioned 

tors     or     office 

because  of  dis- 

employees earn- 

ability,       such 

ing     over     $49 

sum    as    board 

per  month. 

sf  trustees  may 

determine. 

[§12.1 

Employees   of 
public      library 
boards    in    cit- 
ies     of      more 
than    100,00  in- 
habitants. 

1.     Minimum 
20  years.     [§9.] 

2.      Minimum 
10  years.     [§7.] 

1.  No  re- 
quirement. 
[§9.] 
2.  Mini- 
mum 55 
years 

Pension 
awarded  at  any 
time     after     10 
years    of    serv- 
ice.    [§10.] 

Board           of 
trustees    deter- 
mines    amount 
but           within 
maximum        of 
$600.    [§6.] 

Pension  terminates 
when  disability  ceases 
or  for  other  good 
cause  as  board  of 
trustees  shall  deter- 
mine. [§6.] 

[§7.] 

If     pensioned 
for      disability, 

such     sum     as 

board    of    trus- 

tees   deter- 

mines.    [§6.] 

Employees   of 
houses    of    cor- 
rection  in    cit- 
ies     of      more 
than  150,000  in- 
habitants. 

Minimum     20 
vears.      t§7     or 
§9.] 

No  re- 
quirement. 

Pension 
awarded  at  any 
time     after     < 
years  of  contri- 
bution to  fund. 
[§10.] 

$600.    [§10.] 

Pension  terminates 
when  disability  ceases 
or  for  other  good 
cause,  subject  to  the 
approval  of  the  major- 
ity of  the  contribu- 
tors to  the  fund.  [§9.] 

26? 


IN  FORCE  IN  ILLINOIS  JANUARY  1,   1916. 

WIDOWS  OF  EMPLOYEES. 


Conditions  for  pension. 


Amount  of 

pension  per 

year. 


Provisions  for  discontin- 
uance of  pension. 


No   provisions. 


No  pro  visions 


No  provisions. 


See  additional  data. 


See  addition- 
al data. 


No   provisions. 


See  additional  data. 


See   addition- 
al data. 


No   provisions. 


(1)  If  husband    was   retired   on   service   pension, 
>rovided  marriage  took  place  at  least  5  years  be- 
'ore  his  death   [§8]   and  prior  to  retirement.    [§2.] 

(2)  If  husband  was  retired  on  disability  pension, 
>rovided  marriage  took  place  at  least  5  years  be- 
fore his  death.     [§10.] 

(3)  If  husband  died  while  a  contributor,  provided 
marriage   took  place   at   least   5  years   before   his 
death.     [§8.] 


1600.    [§8.] 


2.  Same    as 
in      1      above. 
[§10.] 

3.  Same     as 
in      1      above. 
[§10.] 


In  all  cases  pensions  termi- 
nate upon  marriage.    [5§8  and 


258 


TABULAR    DIGEST    OF    PENSION    LAWS 
NATURAL    CHILD    OR    CHILDREN    OF   EMPLOYEES. 


Beneficiaries. 


Conditions  for  pension. 


Amount  of  pension 
per  year. 


Provisions  for  discon 
tinuance  of  pension. 


Employees  of  cities 
of  more  than  100,000 
inhabitants. 


No   provisions. 


No  provisions. 


No  provisions. 


Employees  of  boards 
of  education  in  cities 
of  more  than  100,000 
inhabitants,  who  are 
engineers,  janitors  or 
office  employees  earn- 
ing over  $49  per 
month. 


Employees  of  public 
library  boards  in  cit 
ies  of  more  than 
100,000  inhabitants. 


See   additional   data. 


See  additional  data. 


No  provisions. 


See    additional   data. 


See  additional  data. 


No  provisions. 


Employees  of  houses 


Children  under   16  years 

of  correction  in  cities  of  age  of  deceased  con- 
of  more  than  150,000  tributors  or  beneficiaries 
inhabitants.  when  no  eligible  widow 

survives.     [§§8  and  10.] 


$600    per    annum    is 
divided  equally  among 
eligible      children      of  attains 
family.     [§§9    and    10.] 


In    all    cases,    pension 
terminates     when     child 
years  of  age. 
and    10.] 


259 


IN  FORCE  IN  ILLINOIS  JANUARY  1,   1916. 


Other  de- 
pendents of 
employees. 


Additional  data. 


No  provisions. 


No  provisions. 


No  provisions. 


Mother  of  de- 
ceased contrib- 
utor or  bene- 
ficiary, if  no 
eligible  widow 
or  children  sur- 
vive, receives 
pension  of  $600 
per  year  as 
long  as  she 
lives.  [§§8  and 
10.] 


Employee  who  has  served  20  or  more  years  may  retire  from  service  and 
retain  right  to  pension  by  paying  $2  per  month  until  attainment  of  age  55, 
provided  that  if  sum  deducted  from  the  salary  of  such  employee  is  less  than 
$480  at  time  of  retirement  from  service,  the  balance  shall  be  paid  within  30 
days  from  date  of  such  retirement.  [§8.] 

This  fund  includes  all  employees  who  were  appointed  to  their  positions 
by  virtue  of  the  Civil  Service  Act  of  March  20,  1895,  and  those  appointed 
prior  to  the  passage  of  that  act  who  are  now  in  service,  who  are  not  partici- 
pants in  any  other  municipal  pension  fund,  except  temporary,  probationary  and 
60-day  employees,  those  who  are  less  than  21  years  of  age,  those  who  were 
60  or  more  years  of  age  on  July  1,  1911,  and  who  had  not  been  in  service  at 
least  10  years,  and  laborers  unless  any  such  laborer  has  applied  for  participa- 
tion as  provided  in  the  Act  of  July  1,  1911.  [§!.] 

Civil  War  veterans  who  have  attained  the  age  of  65  years  may  be  pen- 
sioned after  10  years  of  service.  [§9^.] 

Funds  may  be  invested  in  bonds  of  the  United  States,  of  the  State  of 
Illinois,  of  any  county,  township  or  municipal  corporation  in  the  United 
States,  or  any  special  assessment  bonds  or  vouchers  issued  by  the  City  of 
Chicago.  [§4.] 

Upon  death  of  contributor  who  had  not  been  a  beneficiary,  widow  receives 
sum  not  exceeding  amount  of  benefit  for  1  year.  [§7.] 

Upon  death  of  contributor  who  has  not  been  a  beneficiary,  provided  there 
is  no  widow,  board  of  trustees  may  expend  a  sum  not  exceeding  the  amount 
of  1  year's  benefit  for  the  benefit  of  any  minor  children  of  said  contributor. 
[§8.] 

Funds  may  be   invested  at  discretion   of  board   of  trustees.     [§6.] 


This  act  applies  only  to  employees  who  receive  stipulated  annual  salaries. 
[§2.] 

Contributors  may  withdraw  upon  notice  in  writing  to  the  board  of  trus- 
tees. [§2.] 

Application  for  participation  may  be  made  within  6  months  after  entering 
service,  or  if  not  so  made,  within  3  years,  upon  payment  of  sum  which  would 
have  been  contributed  from  date  of  entering  into  service,  or  from  date  when 
law  became  effective.  [§9,^  ] 

Penalty  of  fine  or  imprisonment  or  both  for  interfering  with  or  obstruct- 
ing enforcement  of  act.  [§14.] 

Upon  death  of  contributor  who  had  not  been  a  beneficiary,  widow  jeceives 
sum  not  exceeding  one  year's  benefit.  [§8.] 

Funds   may   be   invested   at  discretion  of  board   of  trustees.      [§6.] 

Participant  may  withdraw  from  this  fund  upon  giving  notice  in  writing. 
[§2.] 

No  benefits   to   be   paid   until  July   1,    1916.      [§10.] 

PENALTY:  Fine  of  not  less  than  $50,  nor  more  than  $100,  or  6  months' 
imprisonment  in  county  jail,  or  both,  for  interference  with  or  obstruction  of 
enforcement  of  provisions  of  this  law.  [§15.] 

Credit  for  service  prior  to  participation  in  this  fund  is  given  upon  pay- 
ment of  2  per  cent  of  salary  received  during  period  of  such  service.  [§2.] 

If  fund  is  insufficient  to  pay  amount  stated,  level  deductions  shall  be 
made.  [§7.] 

Funds  may  be-invested  in  Federal,  State,  county  or  municipal  bonds.   [§4.] 


260 


TABULAR    DIGEST    OF    PENSION    LAWS 


Laws. 


Beneficiaries. 


Management. 


Act  approved,  May 
27,  1915.  In  force,  July 
1,  1915.  Laws  of  111., 
1915,  p.  649. 


Public  school  teach- 
ers, except  those  in 
cities  and  school  dis- 
;ricts  of  more  than 
65,000 

where  teachers'  pen- 
sion funds  were  in 
operation  July  1,  1915. 
(Participation  option- 
al to  those  in  service 
prior  to  July  1,  1915; 
compulsory  to  others.) 


Board  of  five  trustees:  The  superintendent  of 
public  instruction,  and  the  State  treasurer,  ex 
offlcio.  Three  others,  contributors  to  the  fund  or 
annuitants,  elected  by  such  contributors  and  an- 
inhabitants  nuitants,  one  each  year  for  a  term  of  3  years. 
[§§1,  2  and  3.] 

State   treasurer  is   custodian  of  fund.      [§6.] 


Act  approved,  and  in 
force,  June  12,  1909. 
Amended,  June  2,  1911. 
In  force,  July  1,  1911. 
Amended,  June  6,  1911. 
In  force,  July  1,  1911. 
Amended,  June  5,  1911. 
In  force,  July  1,  1911. 
Amended,  June  26,  1913. 
In  force,  July  1,  1913. 
Hurd,  1913,  p.  2210. 


Act  approved,  June 
27,  1913.  In  force,  July 
1,  1»13.  Hurd,  1913, 
p.  2274. 


Public  school  teach- 
ers in  cities  of  more 
than  100,000  inhabi- 
tants. (Participation 
optional  to  those  in 
service  prior  to  July 
1,  1913,  or  those  who  any 
re-enter  service  and 
who  were  employed 

herein      before      that  two 
date ;     compulsory     to 

those   who   enter   serv-  tion.) 
ice   for  the   first   time 
after  July  1,  1913.) 


Board    of   nine    trustees:     Chairman    of   finance 
committee    of    board    of    education    is    ex    offlcio 
member    and    president.      Two    members    of   board 
of  education  elected  by  said  board  for  terms  of  2 
years,   one  elected  each  year.     [§152.] 
Vacancies  in  such  membership  may  be  filled  at 
regular    meeting   of    the    board    of    education. 
[§152.] 
Six  contributing  teachers  for  terms  of  3  years, 

elected  by  contributors  each  year.    [§152.] 
(Vacancies   filled   at   time    of   next   regular  elec- 

[§152.] 
City  treasurer  is  custodian  of  fund.     [§160.] 


Public  school  teach 
ers  in  school  districts  third 
of  not  less  than  10,000  of 
nor  more  than   100,000 
inhabitants.      (Partici 
pation  compulsory.) 


Board  of  either  three  or  nine  trustees:  One- 
of  this  board  shall  be  members  of  the  board 
„  school  inspectors,  or  governing  body  of  school 
district,  selected  by  such  body.  Two-thirds  shall 
be  contributing  members  of  the  active  teaching 
force,  elected  by  those  of  the  active  teaching 
force  who  are  contributors,  for  terms  fixed  by  the 
governing  body  of  school  district.  [§2.] 

Treasurer  of  school  district  or  of  board  of  school 
inspectors  is  custodian  of  fund.  [§10.] 


261 


IN  FORCE  IN  ILLINOIS  JANUARY  1,  1916. 

SOURCES  OF  REVENUE. 


From 
employees. 


From  other  sources. 


Limitations  of  payments 
by  employees. 


Refunds. 


First     10  An    amount   from    the    common 

years,  $1  per  school  fund  sufficient  to  meet  all 
month;  next  5  demands  under  this  act,  which 
years,  $2  per  amount  until  otherwise  provided 
month;  next  10  by  law  shall  be  one -tenth  of  a 
years,  $6  per  mill  on  the  dollar  of  the  assessed 
month.  For  5  valuation  of  all  taxable  property 
months  only  in  the  State  exclusive  of  cities 
of  each  year,  and  school  districts  not  coming 
[513.]  under  the  provisions  of  this  act. 

[§23.] 

Donations,  legacies  or  other 
moneys  received  from  any  legal 
source  or  increment  for  the  pur- 
poses of  this  fund.  [§24.], 


One-half  of 
sum  paid  if 
contributor 

to  teach 
n    public 
schools     before 
teacher  serving    15 

[§27.] 


Assessments  cease  after  25 
years  of  service  and  contri- 
bution to  fund.  [§25a.] 

(NOTE. — This    makes    a    total  ceases 
contribution  of  $400.) 

Before   receiving    pension   be- 
cause    of      disability, 
must    have    paid    the    sum    of  years. 
$400,  into  fund.     [§25c.] 

Teachers  satisfying  service 
and  age  requirements  are  eligi- 
ble for  pension  upon  payment 
into  fund  of  a  sum  equal  to 
that  which  such  teacher  would 
have  paid  had  he  or  she  been  a 
contributor  during  period  of 
past  service  with  simple  inter- 
est at  4  per  cent  per  annum. 
[§25b.] 


First  5  years,  Interest  upon  tax  levied  for 
50  cents  per  school  purposes,  not  to  exceed  1 
month:  second  per  cent  of  total  sum  levied. 
5  years,  $1  [§165.] 


per    month ; 
third    5    years, 
$1  50  per  month. 


Thereafter,      $3  uted  by  teachers,   and  has  power 


per  month. 

(Deductions 
made        during 
10     months     of 
school       year.) 
[§155.] 


Deductions  from  salaries  from 
date  of  entrance  into  service 
to  date  of  pension.  [§155.] 

Minimum       contribution       for 
Board    of    education    must    pay  service  pensioners,  $450.     [§155.] 

No  minimum  contribution  for  tributed 
disability    pensioners.     [§158.] 


an   amount   which,   added   to   the 
above,    equals    the    sum    contrib- 


to  pay  an  amount  which,  added 
to  interest  as  stated,  equals 
twice  the  amount  contributed  by 
teachers.  [§165a.  Act  of  Juno 
5,  1911.  In  force,  July  1,  1911. 
As  amended,  June  27,  1913.  In 
force,  July  1,  1913.  Hurd,  1913, 
p.  2215.] 


-,.    ,  An    amount .  from    the    common 

"*»  school  fund  equal  to  one-tenth  of 
•5  per  annum;  a  min  on  each  dollar  of  taxable  date 

IlO°nPr  nn^ifm.'  pr°Perty    °f    the    <**    and    8Ch°o1 

10  per  annum;  (listrict     [§3>     As  amended,  Laws 
third    5    years,  of   m      191*5  64g _j 

5  per 'annum.'     Donations,   legacies,   gifts,   etc., 
Thereafter     |30  paid     into   'said    fund    in    'pursu 

r«i  anmmu       ance  of  any  law  now  in  force  or 
hereafter  enacted.       [§3.       As 

amended,    Laws    of    111.,    1915,    p. 
648.] 


Deductions  from  salaries  from 
date  of  entrance  into  service 
of  pension.     [§5.] 


In  case  of 
discharge  be- 
fore entitled 
to  pension,  full 
amount  con- 
In 

case   of    volun- 
tary      resigna- 
tion   before 
completion      of 
15      years      of 
service,        one- 
half  of  amount 
contributed. 
[§161.] 


In  case  of 
to  discharge,  full 
sum  contrib- 
uted. In  case 
of  voluntary 
resignation  be- 
fore comple- 
tion of  15  years 
of  service,  one- 
half  of  sum 
contributed. 
[§10.] 


262 


TABULAR    DIGEST    OP    PENSION    LAWS 
EMPLOYEES. 


Beneficiaries. 

Conditions  for  pension. 

Amount  of  pen- 
sion per  year. 

Provisions 
for  discontin- 
uance of 
pension. 

Service. 

Ag-e. 

Disability. 

Public  school 

Minimum     25 

Minimum 

Pension    awarded 

'  Sixteen  dollars 

If     pensioned 

teachers,  except 
those    in   cities 
and  school  dis- 

years   of    serv- 
ice in  the  pub- 
lic   schools    of 

50  years. 
[§25a.] 

after  15  years'  serv- 
ice in  the  public 
schools  of  the 

per  annum  for 
each  year  of  serv- 
ice, total  not  to 

because  of  dis- 
ability:      Pen- 
sion terminates 

tricts    of   more 

the     United 

United  States,  oJ 

exceed  $400  per  an- 

when  disability 

than   65,000  in- 

States,    15     of 

which  at  least  J 

num.  [§26.] 

ceases.      [§25c.] 

habitants  where 
teachers'     pen- 

which         have 
been    spent    in 

have  been  spent 
in  the  public 

sion  funds  were 
in         operation 

the    public 
schools   of  this 

schools  of  this 
State.  [§25c.] 

July   1,    1915. 

State.    [§25a.] 

Public  school 
teachers  in  cit- 
ties     of     more 

Minimum     25 
years    of     serv- 
ice in  the  pub- 

No pro- 
visions. 

Pension  awarded 
after  15  years  of 
service  fh  the 

Service     pension- 
ers:    $400.      [§158.] 
Disability       pen- 

No provisions 

than  100,000  in- 
habitants. 

lic     schools    of 
the    United 
States,  the  last 

public  schools  of 
the  United  States, 
the  last  9  of 

sioners:  A  sum 
proportional  to  the 
amount  of  con- 

15     of      which 

which  have  been 

tribution  as  re- 

have    been 

served  in  such 

lated  to  the  sum 

served    in   such 

city.  [§157.] 

of  $450.  [§158.] 

city.    [§157.] 

Public  school 
teachers     in 
school   districts 
of       not      less 

Minimum     25 
years,    at    least 
15      of      which 
must  be  in  dis- 

In gen- 
eral, no  re- 
quirement. 
See       addi- 

Pension awarded 
after  15  'years  of 
service,  at  least  9 
of  which  must  have 

Service     pension- 
ers:     Not     to    ex- 
ceed $400.     [§8.] 
Disability       pen- 

No provisions 

than  10,000  nor 
more  than  100,- 
000     inhabi- 
tants. 

trict  under  the 
provisions    of 
this   act.    [§7.] 

tional 
data. 

been  in  district 
under   the  pro- 
visions of  this  act. 
[§7.] 

sioners:  A  sum 
proportionate  to 
the  amount  of  con- 
tribution as  re- 

lated to  the  sum 

of  $400.  [§8.] 

263 


IN  FORCE  IN   ILLINOIS    JANUARY   1.    1916. 

WIDOWS  OF  EMPLOYEES. 


Conditions  for  pension. 


Amount  of  pension 
per  year. 


Provisions  for  discontinuance 
of  pension. 


No  provisions. 


No  provisions. 


No  provisions. 


No  provisions. 


No  provisions. 


No  provisions. 


No  provisions. 


No  provisions. 


No  provisions. 


264 


TABULAR    DIGEST    OP    PENSION    LAWS 
NATURAL  CHILD  OR  CHILDREN  OF  EMPLOYEES. 


Beneficiaries. 


Conditions  for  pension. 


Amount  of 

pension  per 

year. 


Provisions  for  discon- 
tinuance of  pension. 


Public  school  teach- 
ers, except  those  in 
cities  ana  school  dis- 
tricts of  more  than 
65,000  inhabitants 
where  teachers'  pension 
funds  were  in  operation 
July  1,  1915. 


No  provisions. 


No  provisions. 


No  provisions. 


Public  school  teach 
ers  in  cities  o/  more 
than  100,000  inhabi 
tants. 


No  provisions. 


No  provisions. 


No  provisions. 


Public  school  teach 
ers  in  school  districts 
of  not  less  than 
10,000  nor  more  than 
109,000  inhabitants. 


No  provisions. 


No  provisions. 


No  provisions. 


265 


IN  FORCE  IN  ILLINOIS  JANUARY  1,  1916. 


Other  depend- 
ents of 
employees. 


Additional  data. 


No  provisions. 


No  provisions. 


No  provisions. 


No  person  while  receiving  an  annuity  from  any  other  public  school 
teachers'  pension  and  retirement  fund,  shall  receive  an  annuity  from  this 
fund.  [§25a.] 

If  teacher  who  receives  a  refund  afterward  returns  to  teach  in  public 
schools,  such  teacher  shall  return  to  fund,  within  three  years,  the  amount 
withdrawn  with  4  per  cent  simple  interest  for  the  time  such  sum  was 
withdrawn.  [§27.] 

All  cities  and  school  districts  of  the  State  come  under  the  provisions 
of  this  act,  with  exceptions.  [§36.] 

(NOTE.  —  The  exceptions  are  Chicago  and  Peoria.) 

Participation  is  voluntary  as  to  teachers  who  were  employed  on  or  before 
July  1,  1915,  and  obligatory  on  those  employed  later.  [§§14  and  15.] 

Funds  may  be  invested  in  mortgages  on  unencumbered  realty  situated 
in  this  State  of  a  value  of  double  the  loan;  bonds  of  this  State,  Sanitary 
District  of  Chicago,  counties,  townships  and  cities  of  Illinois,  and  bonds 
issued  by  school  directors  for  improving  school  property.  [§9.  See  Hurd,  1913, 
§§72  and  195.] 

Board  of  trustees  has  power  to  decrease  benefits  if  necessitated  by  con- 
dition of  fund,  provided,  such  decrease  be  in  same  ratio  for  all  classes.  [§155.] 

Service  outside  of  such  city  shall  be  considered  in  computing  time 
served  for  purpose  of  establishing  rate  of  deduction  for  benefit  of  fund. 
[§155.] 

Teachers  not  participants  who  have  withdrawn  from  fund  may  apply  for 
reinstatement  before  July  1,  1916,  and  shall  receive  same  upon  payment  of 


full  amount  of  contribution  to  date,  plus  4  per  cent  interest.     [§156(a).] 

Teachers  reemployed  on  or  after  July  1,  1916,  may  apply 
within  three  years  from  date  of  reemployment.     [§156  (a).] 


may  apply  for  participation 


Teachers  who  become  participants  in  this  fund  may  receive  credit  for  past 
services  by  paying  amount  of  contribution  for  the  period  of  said  service, 
plus  4  per  cent  interest.  [§156.] 

Teachers  retired  under  previous  acts  have  their  pensions  graduated  so  as 
to  receive  not  less  than  $320  nor  more  than  $400. 

Funds  may  be  invested  in  mortgages  on  unencumbered  realty  situated 
in  this  State  of  a  value  double  the  amount  of  loan;  bonds  of  this  State, 
Sanitary  District  of  Chicago,  counties,  townships  and  cities  of  Illinois,  and 
bonds  issued  by  school  directors  for  improving  school  property.  [§153,  see 
§72,  also  §195.] 

If  in  any  school  district  there  is  not  sufficient  revenue  from  interest 
and  contributions  to  maintain  a  teachers'  pension  fund  under  the  pro- 
visions of  this  act,  such  district  may,  by  vote,  establish  a  fund  for  retire- 
ment of  teachers  over  50  years  old,  who  have  taught  in  the  district  for  at 
least  25  years.  Retiring  allowance  shall  not  exceed  $400.  [§14.] 

Funds  may  be  invested  in  mortgages  on  unencumbered  realty  situated 
in  this  State,  of  a  value  of  double  the  amount  of  the  loan;  bonds  of  this 
State,  Sanitary  District  of  Chicago,  counties,  townships  and  cities  in  tnis 
State,  and  bonds  of  such  school  district.  [§4.] 


REPORT 


OF 


Illinois 

Pension  Laws 
Commission 


PART    I.   Investigations  With  Certain  Comparative  Studies 

PART  II.   Underlying  Principles  and  Specific  Recommen- 
dations for  a  Revised  Pension  Plan 


PART  II 


—18  P  L 


REPORT  OF  THE  ILLINOIS  PENSION  LAWS 
COMMISSION. 


PART  II. 

PRINCIPLES  AND  RECOMMENDATIONS. 
Chapter       I :  Underlying  Principles  of  a  Pension  Plan. 

Chapter  II :  Outline  for  a  Pension  Plan  on  a  Reserve  Basis,  and 
Suggested  Provisions  for  Bringing  Existing  Public 
Pension  Funds  in  Illinois  under  this  Plan. 

Chapter  III :  Proposals  for  Amendatory  Pension  Legislation  by 
the  50th  General  Assembly  of  Illinois. 

Chapter  IV:  Recommendation  for  Further  Study  of  the  Pension 
Problem  in  Illinois. 


CONTENTS. 


PART  II. 


CHAPTER  I— UNDERLYING  PRINCIPLES  OF  A  PENSION  PLAN. 

INTRODUCTION.  PAGE. 

Scope   and   urgency   of   the  pension   problem 271 

Illinois    pension    systems 272 

Unsound  condition  of  pension  systems  in  Illinois 272 

FEATURES  INVOLVED  IN  A  PENSION  SYSTEM. 

Theory   of   public    employee   pensions 273 

Who    should    be    beneficiaries 275 

Age  and  length  of  service  required  for  pension 277 

What  should   be   the   amount   of   a   pension 078 

Method  of  providing  funds  for  paying  pensions [2 80 

Ratio  of  employers'  contributions   to  those  of  employees '288 

Management     284 

CHAPTER  II— OUTLINE  FOR  A  PENSION  PLAN  ON  A  RESERVE  BASIS, 
AND  SUGGESTED  PROVISIONS  FOR  BRINGING  EXISTING  PUBLIC 
PENSION  FUNDS  IN  ILLINOIS  UNDER  THIS  PLAN. 

Main   features    285 

Definitions   286 

SPECIFIC  PROVISIONS  OF  PROPOSED  STANDARD  PENSION  PLAN. 

Employees  to  whom  plan  should  apply 286 

Contributions  by  both  employer   and  employee 287 

Reserve  plan  to  be  adopted 287 

Who  are  to  receive  pensions 287 

Amounts   of   pensions    288 

Contributions    2S9 

Equities  protected 290 

Pension  for  disabled  employees 290 

Pensions   for   employees   injured   or   killed,   but   not   in   the   performance   of 

duty    291 

Surplus 292 

Management     292 

Bringing  existing  pension  funds  under  the  standard  plan 293 

Actuarial  computations  showing  the  results  to  be  expected  under  proposed 

standard   pension    plan 295 

CHAPTER  III— PROPOSALS  FOR  AMENDATORY  PENSION  LEGISLATION 
BY  THE  50th  GENERAL  ASSEMBLY  OF  ILLINOIS. 

Proposals   affecting  all  funds 299 

Proposals  affecting  Chicago  Teachers'   Pension  Fund 300 

Proposals  affecting  Fund  of  Municipal  Employees  of  Chicago 300 

Proposals  affecting  Chicago  Policemen's  Pension  Fund 301 

Proposals  affecting  Chicago  Firemen's  Pension  Fund 301 

Table    showing   approximate   results   for    typical    employees   of   above   pro- 
visions,   if    adopted 302 

CHAPTER  IV— RECOMMENDATION  FOR  FURTHER  STUDY  OF  THE  PEN- 
SION PROBLEM   IN  ILLINOIS 303 


271 


CHAPTER  I. 

UNDERLYING  PRINCIPLES  OF  A  PENSION  PLAN. 
INTRODUCTION. 

The  act  providing  for  the  Commission  requires  it  to  make 
recommendations,  but  does  not  require  it  to  propose  a  bill  for  carry- 
ing them  out.  The  Commission  had  nevertheless  hoped  earlier 
to  propose  such  a  bill  for  adoption  by  the  50th  General 
Assembly,  but  it  now  seems  inadvisable  to  try  to  do  this.  The 
divergent  .positions  found  to  exist  among  different  groups  of  em- 
ployees interested  in  existing  funds  are  too  marked  and  the  pension 
problem  is  too  complicated  in  its  various  bearings  to  justify  an 
effort  to  frame  legislation  for  the  general  standardization  of  pen- 
sion funds  until  this  problem,  as  it  exists  in  Illinois,  has  been 
further  studied,  with  a  view  to  analyzing  its  various  branches  and 
securing  reasonable  concensus  of  opinion  among  those  interested 
as  to  the  general  lines  of  such  standardization.  The  Commission's 
recommendations  correspond  with  this  notion. 

This  chapter  contains  accordingly  what  are  believed  to  be  the 
correct  underlying  principles  for  pension  practice  in  Illinois.  Chap- 
ter II  presents  a  detailed  type  plan  for  carrying  out  these  principles, 
but  recommends  that  before  trying  to  apply  this  plan  generally  the 
pension  problem  be  further  investigated.  Chapter  III  offers  for 
immediate  adoption  certain  changes  respecting  some  of  the  chief 
pension  funds  in  Illinois,  with  a  view  to  improving  their  condition 
pending  the  maturing  of  measures  for  their  more  thoroughgoing 
treatment.  Chapter  IV  lists  specific  questions  which  require 
further  consideration. 

SCOPE  AND  URGENCY  OF  THE  PENSION  PROBLEM. 

The  importance  of  pensions  for  public  employees  is  evidenced  by 
the  length  of  time  during  which,  and  the  diverse  plans  under  which, 
they  have  heretofore  been  provided,  and  by  current  efforts  toward 
their  improvement. 

Such  pensions  existed  more  than  a  century  ago  in  parts  of 
Europe,  and  have  been  widely  extended  there  and  elsewhere  during 
the  last  generation.  They  are  characteristic  of  Australasian  govern- 
ments, and  are  now  found  in  greater  or  less  degree  in  practically  all 
the  states  of  this  country.  The  general  need  for  a  more  thorough  analy- 
sis and  logical  development  of  the  true  principles  on  which  pensions 
for  public  employees  should  be  maintained  is,  at  the  same  time,  widely 
recognized.  In  1914  Massachusetts  issued  a  344-page  report  on  public 
employees'  pensions,  with  especial  reference  to  the  needs  of  that  state ; 
New  York  City  is  now  completing  a  report  made  at  a  cost  around 


272 

,000,  concerning  such  pensions,  with  a  view  to  improving  its  own 
pension  systems ;  and  a  great  number  of  bills,  designed  to  amend  and 
extend  the  pension  plans  in  Illinois,  have  appeared  in  the  recent  legis- 
latures of  this  State. 

ILLINOIS  PENSION  SYSTEMS. 

The  policy  of  providing  pensions  for  public  employees  in  Illinois 
began  in  a  limited  way  in  1852,  was  materially  extended  in  the  70's, 
has  been  much  farther  extended  within  the  last  decade  and  has  resulted 
in  the  existence  to-day  of  15  pension  laws,  generally  compulsory  in 
terms,  under  which  exist  35  separate  pension  funds,  that  now  include, 
or,  as  options  are  availed  of,  presumably  will  shortly  include,  over 
55,000  State  and  municipal  employees.  At  the  same  time,  according 
to  the  estimates  of  this  Commission  shown  in  Chapter  VII  of  Part  I, 
there  are  still  22,441  municipal  and  State  employees  in  the  State  who 
are  beyond  the  reach  even  of  any  of  the  35  funds. 

The  information  brought  together  in  Part  I  of  this  report  shows 
not  only  that  the  various  public  pension  schemes  now  existing  under 
the  laws  of  Illinois  for  public  employees  are  inharmonious  and  often 
contradictory  with  reference  to  each  other,  but  that  with  perhaps  a  single 
minor  exception  they  are  financially  unsound  and  moving  toward  a 
crisis.  It  shows  the  urgent  need  for  the  adoption  by  law  of  a  revised 
pension  plan  based  on  true  principles,  and  for  the  prompt  merging  of 
existing  pension  systems  into  that  revised  plan  on  terms  not  too  bur- 
densome to  the  contributing  public  authorities  or  to  the  contributing 
employees. 

UNSOUND  CONDITION  OF  PENSION  SYSTEMS  IN  ILLINOIS. 

The  general  condition  of  pension  systems  operating  under  the 
laws  of  Illinois  may  be  correctly  described  as  one  of  insolvency.  That 
is  to  say,  viewed  from  the  standpoint  of  sound  finance  and  of  having 
the  necessary  reserves  to  carry  out  the  payment  of  pensions  as  pro- 
vided in  the  laws,  there  are  immense  deficiencies  in  the  existing  funds. 
In  short,  the  financial  provisions  are  entirely  inadequate  for  paying 
the  stipulated  pensions  when  due.  It  may  be  well  to  emphasize  here 
that  there  is  nothing  more  erroneous  than  the  common  view  that  so 
long  as  the  amount  in  a  pension  fund  is  increasing,  all  is  well  with 
it.  To  be  sure  some  of  these  funds  are  increasing,  but  that  is  no  in- 
dication of  their  sufficiency,  and  it  is  strange  how  completely  satisfy- 
ing such  increase  is  to  many  participants  even  if  the  fund  is  certainly 
inadequate. 

The  Chicago  teachers'  pension  fund  approaches  nearer  to  a  con- 
dition of  solvency  than  any  other  of  considerable  size  and  experience 
in  this  State.  In  fact,  if  each  teacher  in  Chicago  had  contributed  ever 
since  entering  the  service  as  required  of  teachers  at  present,  and  if 
the  Board  of  Education  had  set  aside  an  equal  amount,  as  it  does  at 
present,  and  these  amounts  had  been  compounded  annually  at  4  per 
cent  interest,  the  Chicago  teachers'  fund  would  be  solvent.  It  is  not 
solvent  because  of  liabilities  accrued  at  the  time  when  it  began  to  have 
its  present  sources  of  income.  On  account  of  such  accrued  liabilities 
there  is  a  deficiency  whose  present  value  is  over  $5,000,000.  More- 


273 

over,  this  deficiency  will  increase  under  the  present  method  of  opera- 
tion. The  time  is  at  hand,  therefore,  to  put  the  system  on  a  sound 
financial  basis.  Some  other  funds  show  a  much  larger  deficiency. 
The  Chicago  firemen's  fund  shows  a  deficiency  having  a  present  value 
of  over  $13,000,000,  and  the  Chicago  police  fund  a  deficiency  having 
a  present  value  of  over  $30,000,000.  These  funds,  which  are  the  ones 
for  which  we  are  able  to  make  the  most  reliable  calculations,  indicate 
also  the  general  condition  of  all  the  principal  funds  in  the  State. 

This  is,  moreover,  a  condition  that  is  sure  to  grow  worse  unless 
prudent  and  positive  measures,  involving  decided  changes,  are  promptly 
taken  to  establish  the  systems  on  a  secure  basis  for  the  future.  Fur- 
thermore, it  will  become  increasingly  difficult  as  time  goes  on,  to  pass 
from  the  existing  unscientific  plans  to  a  scientific  "reserve"  plan  as 
described  later,  since  with  the  present  provisions  for  revenue  and  with 
the  present  benefits  the  deficiencies  will  increase. 

Moreover,  the  existing  pension  systems  are  so  different  in  their 
provisions,  and  taken  together  present  such  a  haphazard  condition, 
that  the  task  of  insuring  equitable  treatment  for  different  classes  of 
employees  and  of  securing  sound  plans  by  slightly  patching  these  sys- 
tems can  not  be  accomplished.  To  reach  a  solution  of  the  pension 
problem  our  most  promising  course  would  seem  to.be  to  proceed  to 
develop  a  pension  system  in  line  with  definite  principles  which  we  con- 
ceive to  be  fundamental  to  efficiency  in  the  public  service  and  to  the 
welfare  of  employees. 

FEATURES  INVOLVED  IN  A  PENSION  SYSTEM. 
The  main  matters  to  be  considered  in  working  out  such  a  revised 
pension  system  are: 

1.  The  theory  of  public  employee  pensions. 

2.  The  question  of  who   should   be  beneficiaries — whether   em- 
ployees only,  or  their  widows  and  children  also. 

3.  The  length  of  service  and  the  age  required  for  a  pension. 

4.  The  amount  of  the  pension. 

5.  The  method  of  providing  funds  for  paying  pensions — whether 
the  payments  should  be  spread  over  a  long  period  in  advance  and 
accumulated  with  interest,  or  be  made  currently  as  pensions  need  to 
be  paid. 

6.  The  ratio  in  which  employer  and  employee  should  contribute 
the  requisite  funds  with  which  to  pay  pensions ;  and 

7.  The  scheme  of  management. 

The  principles  which  should  control  in  regard  to  these  seven  items 
will  now  be  discussed. 

1.   THEORY  OF  PUBLIC  EMPLOYEE  PENSIONS. 

A  Pension  System  Benefits  the  Public  Service. 

In  theory — and  it  is  believed  that  the  theory  verifies  itself  in  prac- 
tice— pensions  for  public  employees  are  beneficial  to  the  public  as  an 
employer.  Continuity  of  service  is  of  great  advantage  to  the  employer 
in  most  lines  of  effort.  It  is  especially  so  in  the  public  service,  because 
of  the  complex  relations  of  that  service  and  the  value  to  it  of  that 
knowledge  on  the  part  of  employees  which  come  only  from  their 
long  acquaintance  with  those  relations.  Pensions  make  for  such  con- 


274 

tinuity.  Employees  are  generally  required  to  remain  in  the  service 
for  an  extended  period  of  time,  usually  from  twenty  to  thirty-five 
years,  before  they  can  receive  a  pension.  If  an  employee  voluntarily 
leaves  the  service  or  is  discharged  for  fault  before  the  expiration  of 
that  period,  he  usually  forfeits  in  whole  or  in  part  his  pension  ex- 
pectance. The  rule  for  such  forfeiture  deters  employees  from  leaving 
their  positions  voluntarily,  and  makes  them  anxious  not  to  give  ground 
for  discharge. 

Pensions  tend  also  to  protect  the  public  service  from  incompe- 
tence through  the  continuance  in  that  service  of  an  employee  after 
his  period  of  efficiency  has  passed.  The  fact  that  such  an  employee 
has  the  option  of  retiring  and  receiving  a  pension,  especially  if  this 
is  reasonably  ample  in  amount,  encourages  him  to  do  so,  instead  of 
trespassing  upon  the  kind-heartedness  of  a  department  head  who 
might  shrink  from  discharging  him. 

A  Pension  System  Benefits  the  Employee. 

A  pension  system  also  inures  to  the  benefit  of  the  employee. 
It  tends  toward  permanency  of  employment,  and  thus  affords  the 
employee  certain  prospects  of  promotion.  Its  operation  naturally 
draws  attention-  also  to  underpaid  employees  who  can  not  easily 
make  the  contributions  necessary  for  pensions,  and  tends  thus  to 
pull  up  the  lower  earnings  to  a  minimum  sufficient  to  make  such 
contributions  practicable.  The  chief  attraction  of  a  pension 
system  to  an  employee  is,  however,  that  it  means  a  life  annuity  at 
the  end  of  service.  It  means  an  advantageous  investment  of  his 
savings  to  provide  for  old  age.  It  facilitates  his  commendable  de- 
sire to  meet  his  family  obligations.  It  is  our  common  theory  that 
the  husband  and  father  should*  in  his  period  of  economic  pro- 
ductivity, provide  for  the  needs  of  himself  and  his  dependents  not 
only  during  that  period,  but  for  the  anticipated  later  time  when  his 
productivity  shall  have  ceased.  This  result  is  to  be  accomplished  by 
thrift — by  putting  aside,  month  by  month  and  year  by  year,  and 
investing  in  some  form  of  productive  capital,  which  he  himself 
shall  own,  a  certain  small  fraction  of  income,  in  order  that  this  ac- 
cumulation may  suffice  for  the  time  of  need  later.  This  doctrine  of 
saving  against  old  age  and  the  desire  to  put  it  into  effect  are  well 
nigh  universal. 

The  actual  practice  of  the  doctrine,  however,  in  any  consider- 
able degree,  is  far  from  universal  and  encounters  grave  obstacles 
to-day.  We  even  hear  emphatic  and  bitter  denunciation  of  the 
whole  notion  of  thrift  as  a  practical  matter,  on  the  ground  that 
the  income  of  large  classes  of  people  is  too  small  to  warrant  saving, 
while  favorable  opportunities  for  safe  and  remunerative  investment 
of  small  savings  are  not  generally  open  to  employees — nor  are 
these  claims  groundless.  Not  only  the  wage  earner,  but  to  a  con- 
siderable extent  the  salaried  man  also,  is  under  a  serious  handicap 
to-day  in  putting  thrift  into  practice.  He  can  not  make  ad- 
vantageous investments.  In  the  first  place  he  has  ceased  to  own 
the  tools  which  he  uses,  and  so  hasn't  these  to  dispose  of,  or  to 
pass  on  to  his  son  when  he  can  no  longer  earn.  In  the  second 


place,  he  is  very  greatly  impeded  under  present  conditions  in  ac- 
quiring that  primary  and  most  inviting  form  of  investment,  a  home. 
The  opportunities  open  to  him  to  procure  and  pay  for  a  home 
adapted  to  his  needs  and  within  his  means  are  limited  and  wholly 
unsatisfactory,  especially  in  large  cities.  In  the  third  place,  the 
public  employee,  as  well  as  the  private,  is  at  a  decisive  disadvan- 
tage in  seeking  to  invest  his  savings  safely  and  productively  in  the 
general  investment  field.  The  making  of  paying  investments  to-day 
is  largely  an  expert  matter,  while  the  employee  is  not  an  expert  in 
that  line  and  has  neither  time  nor  opportunity  to  become  such. 
Investments  are  also  made  in  too  large  units  to  meet  his  case. 
He  may  possibly  venture  into  the  wretched  field  of  btiilding  lot 
speculation,  or  petty  second-mortgage  loans,  or  alluring  get-rich- 
quick  schemes.  He  is  likely  in  so  doing,  however,  to  fare  still 
worse  than  he  would  by  accepting  the  meager  interest  of  the 
postal  or  some  private  savings  bank,  not  to  mention  the  risks  of 
the  neighborhood  type  of  the  latter  to  which  for  convenience  he 
naturally  turns.  A  public  pension  system  is  designed  to  meet  these 
prejudicial  conditions  through  the  institution  of  a  reasonably  re- 
munerative, financially  secure  and  compulsory  plan  to  enable  the 
employee  to  practice  saving  during  his  productive  period. 

The  prevailing  opinion,  and  the  only  one  likely  to  be  adopted 
for  the  time  being  in  this  State,  is  that  pensions  should  attach  to 
the  relationship  between  employer  and  employee,  rather  than  be. 
administered  under  a  general  government  scheme  including  all 
employees.  Since,  therefore,  the  public  should  admittedly  be  a 
model  employer  in  all  respects,  a  public  pension  system  for  public 
employees  seems  desirable. 

2.    WHO  SHOULD  BE  BENEFICIARIES. 

It  is  our  thought  that  a  pension  system  should  be  made  broad 
enough  to  include  all  public  employees  on  practically  permanent 
tenure  who  give  such  long  continued  service  as  to  amount  to  what 
may  reasonably  be  regarded  as  a  life  work;  that  it  should  include, 
with  appropriate  modifications,  employees  who  are  injured;  and 
that  it  should  likewise  include  widows  and  children.  The  general 
practice  differs  greatly,  however,  as  to  these  questions,  and,  of 
course,  the  drain  upon  the  pension  funds  varies  greatly  according  to 
the  inclusiveness  of  the  system.  Most  systems  do  provide  pensions 
for  injured  employees,  especially  if  injured  in  the  performance  of 
duty,  but  only  a  minority  in  this  country  include  widows  and 
children  also. 

As  to  the  propriety  of  insuring  an  income  to  employees  during 
disability  due  to  injury  received  in  the  performance  of  duty,  there 
should  be  no  question.  A  question  does  arise,  however,  as  to 
whether  this  should  be  secured  by  a  pension  system,  sustained  by 
contributions  from  both  employer  and  employee,  or  should  be  met 
by  the  employer  under  the  provision  of  a  workmen's  compensation 
act.  The  present  Workmen's  Compensation  Act  in  this  State  seems 
to  go  upon  the  theory  that  the  charge  should  fall  upon  a  pension 
system,  since  it  purports  to  provide  that  no  public  employee  can 


276 

recover  under  that  act  for  an  injury  for  which  he  is  entitled  to  a 
pension.  Reason  would  seem  to  demand  that  this  provision  be 
reversed.  An  injury  received  by  an  employee  in  the  performance 
of  duty  should  properly  be  charged  upon  the  business,  and  be  met 
accordingly  under  the  Workmen's  Compensation  Act.  The  Com- 
mission has  felt  it  to  be  expedient  to  provide  for  a  pension  to  such 
an  injured  employee  and  to  his  widow  and  children  in  case  of  his 
death,  on  the  ground  that  adequate  provision  is  not  made  under 
the  Workmen's  Compensation  Act.  We  are  clear,  however,  that 
the  liability  should  be  met  primarily  under  the  Workmen's  Com- 
pensation Act  and  that  the  pension  should  be  reduced  by  the 
amount  received  under  that  act. 

It  seems  expedient  also  to  make  certain  limited  pension  pro- 
visions for  the  employees  injured  while  not  in  the  performance  of 
duty — although  this,  like  the  case  last  considered,  involves  an  ex- 
tension of  the  pension  principle  beyond  what  is  strictly  its  field, 
and  into  the  fi'eld  of  accident  insurance. 

Widows  and  Children  of  Deceased  Employees. 

On  the  theory  that  the  typical  public  employee  is  the  head  of  a 
family  and  that  the  object  of  a  pension  is  to  provide  for  his  needs 
in  old  age,  and  since  the  family,  including  children  under  the  age 
of  self-support  so  far  as  there  are  such,  is  regarded  as  a  unit,  it  is 
clearly  logical,  and  it  seems  to  the  Commission  wise  as  a  matter  of 
social  policy,  that  pensioning  arrangements  for  the  typical  em- 
ployee should  be  made  to  include  his  widow  and  children,  in  case 
he  should  die  leaving  such.  It  is  recognized  that  the  inclusion  of 
these  dependents  very  greatly  increases  the  amount  to  be  paid  in 
pensions. 

The  practice  of  paying  pensions  to  widows  and  children  of  certain 
employees  doubtless  had  its  origin  in  the  feeling  that  provision  should 
be  made  for  families  of  men  who  lose  their  lives  in  the  performance  of 
duty.  Our  investigations  show  also  that  cases  of  this  precise  sort  do 
not  constitute  a  sizable  financial  burden  on  the  pension  systems  cre- 
ated under  the  laws  of  Illinois.  These  investigations  show  on  the 
other  hand,  however,  that,  under  certain  systems,  widows'  pensions 
have  been  so  extended  beyond  that  class  of  families,  that  the  total 
of  pensions  to  be  paid  the  widows  exceeds  the  total  of  those  to  be 
paid  to  retired  employees.  Thus,  in  the  case  of  the  Chicago  police 
pension  system  the  pensions  being  paid  to  widows  at  present  amount 
to  a  little  more  than  those  being  paid  to  former  employees,  and  in 
the  ultimate  normal  state,  they  will  cost  about  58  per  cent  of  the 
total  of  all  pensions.  In  the  case  of  the  Chicago  firemen's  pension 
system  the  amount  of  a  widow's  pension  is  less  than  under  the  police 
system,  but  still  the  cost  of  widows'  pensions  will  in  the  ultimate 
normal  state  exceed  somewhat  the  cost  of  pensions  for  retired  fire- 
men. When  compared  with  the  common  practice  in  cities  in  other 
states,  the  pensions  paid  per  capita  in  Illinois  to  widows  of  policemen 
and  firemen  are  on  an  unusually  expensive  basis.  It  is  very  common 
in  other  states  to  keep  up  the  original  practice  of  paying  a  pension 
to  a  widow  only  when  her  husband  lost  his  life  in  the  performance 


277 

:  duty.  When  pensions  are  granted  instead,  as  in  Chicago,  to  the 
widows  of  policemen  and  firemen  whose  deaths  are  not  due  to  injuries 
received  in  the  line  of  duty,  it  is  usual  to  specify  that  the  pension 
is  not  to  be  greater  than  a  certain  amount,  which  is  much  less  than 
the  amount  paid  under  similar  circumstances  under  the  laws  of  Illi- 
nois. As  a  rule,  the  amount  specified  is  $20  or  $25  per  month.  For 
employees  who  lost  their  lives  in  the  performance  of  duty,  there  is 
no  question  but  that  it  is  in  harmony  with  good  public  policy  to  make 
liberal  provisions  for  their  widows  and  dependent  children ;  but  when 
the  full  benefits  provided  for  such  widows  are  extended,  as  they  have 
been  in  some  funds  in  Illinois,  to  all  widows  without  regard  to  the 
cause  of  death,  and  with  little  or  no  regard  to  the  length  of  service 
rendered  by  the  employee,  we  are  at  once  making  an  expensive  system 
and  one  that  does  not  seem  equitable.  To  illustrate,  under  police 
funds,  if  a  husband  dies  from  any  cause,  after  ten  years  of  service,  the 
widow  gets  a  pension  of  half  his  salary,  except  that  the  pension  shall 
not  be  less  than  $600  nor  more  than  $900.  If  he  dies  before  complet- 
ing ten  years  of  service,  the  widow  gets  no  pension ;  but  if  he  dies 
just  after  ten  years  of  srvice,  she  gets  as  much  in  pension  per  year  as, 
and  much  more  in  total  amount  than,  the  widow  of  a  man  receiving 
like  salary  who  was  long  in  service.  The  iniquity  of  such  a  provision 
is  obvious.  Some  change  should  be  made  to  reduce  the  burden  of 
widows'  pensions  on  the  po-licemen's  and  firemen's  funds.  Certain  rea- 
sons exist  for  the  payment  of  pensions  to  widows  on  a  basis  that  does 
not  limit  such  pensions  to  cases  where  the  employee  loses  his  life 
from  injuries  received  in  the  performance  of  duty,  but  such  extension 
should  be  made  with  due  regard  to  the  cost  involved,  and  in  such  a 
way  as  to  provide  a  graduated  scale  of  pensions  depending  on  the 
accumulations  to  the  credit  of  the  employee. 

The  children  of  policemen  and  firemen  in  Illinois  are  pensioned 
.on  distinctly  different  plans  at  present.  For  policemen,  both  parents 
must  be  dead,  and  then  the  pension  to  the  family  of  children  under 
age  of  16  is  the  same  as  it  would  have  been  to  the  widow  if  living. 
This  entirely  disregards  the  number  of  children  in  the  family.  On  the 
other  hand,  the  firemen's  fund  pays  a  certain  uniform  amount  to  each 
child  under  age  16,  while  the  mother  is  living,  and  somewhat  more  if 
both  parents  are  dead.  The  latter  plan  seems  to  be  the  more  equitable 
of  the  two. 

It  should  be  stated  that  the  approval  of  widows'  and  children's 
pensions  rests  mainly  on  the  desirability  of  making  provision  for  the 
family  as  a  unit.  Pensions  to  such  dependents  do  not  aid,  except  per- 
haps in  a  very  indirect  way,  in  relieving  the  service  of  incompetent 
persons,  and  therefore  one  of  the  main  reasons  for  pensions  for  em- 
ployees does  ijpt  apply  to  widows'  and  children's  pensions.  In  short, 
pensions  to  dependents  after  the  death  of  the  employee  are  really  in 
the  nature  of  compulsory  life  insurance. 

3.    AGE  AND  LENGTH   OF  SERVICE  REQUIRED  FOR  PENSION. 

Among  the  pension  systems  of  Illinois,  there  are  some  which 
prescribe  merely  a  period  of  service,  such  as  20  or  25  years,  as  a 
requirement  for  a  pension.  There  are  others  which  prescribe  both  a 


278 

period  of  service  and  a  minimum  age  for  retirement.  Thus,  the  Illi- 
nois State  Teachers'  Pension  and  Retirement  Fund  provides  that  the 
person  must  be  at  least  50  years  old  to  receive  the  pension.  The 
situation  in  this  respect  is  well  stated  on  the  last  page  of  Chapter 
III  of  Part  I,  which  shows  how  haphazard  are  these  provisions  in 
regard  to  age  and  service,  even  when  the  character  of  the  employ- 
ment is  the  same. 

In  foreign  countries  where  pension  systems  have  been  long  in 
operation,  so  far  as  we  have  been  able  to  learn  there  is  always  a 
minimum  age  for  retirement  specified.  The  minimum  age  for  public 
employees  is  usually  fixed  at  65,  but  in  some  cases  at  60,  and  for 
women  in  New  Zealand  at  55. 

It  seems  clear  that  some  of  the  greatest  abuses  of  a  pension  sys- 
tem come  from  the  failure  to  specify  a  proper  minimum  age  of  re- 
tirement. With  only  a  service  requirement  of  20  or  25  years,  a  con- 
siderable number  of  men  enter  upon  pension  at  age  under  50,  and  they 
are  apt  to  be  the  most  capable  men  in  the  service,  as  such  men  may 
accept  pension  on,  say,  half  salary,  and  seek  employment  elsewhere 
to  advantage.  The  men  who  accept  pensions  at  ages  below  50  live, 
on  the  average,  so  long  that  they  get  from  the  fund  much  more  than 
their  equitable  share,  and  they  become  the  real  burdens  on  the  pension 
system.  It  is  both  demoralizing  to  the  public  service  and  inordinately 
burdensome  to  a  pension  system  to  allow  men  to  retire  on  pensions 
in  the  prime  of  life. 

To  carry  out  the  principle  that  a  pension  is  to  provide  for  the 
needs  of  an  employee  after  his  period  of  efficiency  has  passed,  it  is 
necessary  to  determine  upon  some  average  as  marking  the  end  of  that 
period.  There  will,  of  course,  be  exceptional  cases  where  individuals 
are  well  qualified  to  continue  in  their  accustomed  work  beyond  that 
age,  and  will  do  so.  It  is  possible,  however,  to  determine  upon  some 
age  which  will  approximately  mark  the  end  of  the  reasonably  produc- 
tive period  of  the  average  employee,  and  that  should  obviously  be 
fixed  as  the  minimum  age  at  which  employees  should  be  eligible  to 
receive  a  pension. 

This  minimum  age  for  retirement  on  pension  varies  to  some  ex- 
tent in  different  services,  according  to  the  demands  of  the  service.  For 
example,  the  agility  required  of  firemen  makes  it  appropriate  that  they 
should  retire  from  service  earlier  than  public  employees^  in  general. 
While  there  is  no  question  in  the  minds  of  the  Commissioners  as  to 
the  desirability  of  prescribing  some  minimum  age  for  retirement  in 
addition  to  a  period  of  service,  the  Commission  has  encountered  diffi- 
culty in  the  selection  of  proper  ages  in  the  different  kinds  of  service; 
for  it  is  necessary,  on  the  one  hand,  to  select  ages  that  are  not  so  high 
as  to  defeat  the  purposes  of  a  pension  system  in  promoting  efficiency ; 
and,  on  the  other  hand,  ages  that  are  not  so  low  as  to  lead  to  retire- 
ments on  pension  at  ages  when  employees  should  render  most  valu- 
able service. 

4.    WHAT  SHOULD  BE  THE  AMOUNT  OF  A  PENSION. 

The  principle  to  be  applied  in  determining  this  question  is  deemed 
to  be  this,  namely :  A  pension  should  be  of  sufficient  amount  to  pro- 


279 

le  in  a  reasonable  manner  for  the  necessary  wants  of  the  beneficiary 
after  the  age  of  efficiency  has  passed.  This  amount  varies  to  some 
extent,  however,  in  accordance  with  the  habits  of  life  previously  fol- 
lowed. The  Commission  has  found  a  very  strong  desire  among  em- 
ployees in  certain  quarters  for  a  pension  uniform  in  amount  for  all 
employees  concerned,  irrespective  of  their  relative  remuneration,  and 
for  contributions  by  employees  equal  in  total  amount. 

It  is  obvious  that  difficulties  will  be  encountered  in  any  effort  to 
provide  a  uniform  pension  reasonably  adequate  for  all  concerned, 
not  burdensome  upon  the  lower  paid  ranks  in  respect  to  the  required 
payments,  and  available  for  persons  entering  service  at  different  ages 
and  remaining  for  different  lengths  of  time,  and  to  do  this  on  the 
basis  of  equal  contributions  from  all.  The  Commission  is  strongly 
of  the  opinion  that  a  certain  minimum  pension,  adequate  for  the 
necessities  of  existence,  should  be  secured  for  all  beneficiaries.  At 
the  same  time  we  deem  it  reasonable  that  a  pension  system  should 
be  arranged  in  recognition,  to  a  certain  degree  at  least,  of  the  inequali- 
ties in  remuneration  and  the  variations  in  standards  and  habits  of  life 
which  actually  exist  among  public  employees.  It  has  seemed  desir- 
able, therefore,  that  a  pension  plan  should  provide: 

1.  For  a  minimum  pension,  the  same  for  all  beneficiaries  who 
have  attained  the  prescribed  length  of  service  and  age  of  retirement. 
Its  amount  should  be  sufficient  to  meet  the  necessary  wants  of  the 
lower  paid  ranks  of  the  employees  concerned ;  and  the  necessary  funds 
therefor  should  be  made  up  by  contributions  partly  from  the  employer 
and  partly  from  the  employee,  but  in  considerably  larger  part  from 
the  employer  than  from  the  employee. 

2.  For  art  extra  or  sur-pension,  to   be  added  to  the  minimum 
pension  for  the  higher  paid  employees — up  to  a  certain  limit  of  salary 
—who  have  attained  the  prescribed  length  of  service  and  age  of  re- 
tirement.     Its   amount   should   correspond   to   the   theory   that   their 
salaries  and  habits  of  life  would  imply  a  somewhat  larger  expenditure 
in  their  later  years  than  in  the  case  of  recipients  of  lower  pay;  and 
the  necessary  funds  therefor  should  be  made  up  by  contributions  partly 
from  the  employer  and  partly  from  the  employee,  but  in  lesser  amount 
from  the  employer  and  in  greater  amount  from  the  employee  than 
in ^  the  case  of  the  minimum  pension.     It  is  also  believed  that  the  dis- 
crimination indicated,   in  favor  of  the  lower  paid  employee,  in  the 
relative  amounts  paid  respectively  by  the  employer  and  employee  for 
the  minimum  pension  and  for  the  sur-pension — the  employer  contri- 
buting more  generously  toward  the  minimum  than  toward  the  sur- 
pension — is  on  the  whole  expedient.     It  should  also  be  added  that 
while  a  young  employee,  receiving  a  very  modest  salary,  would,  while 
that  salary  Continued,  have  an  expectancy  of,  and  be  contributing  to- 
ward, a  minimum  pension  only — the  contributions  of  the  employer 
being  much  larger  than  his — yet  as  his  salary  rose  above  the  limit  for 
the  minimum^  pension  he  would  then  begin  to  contribute  toward,  and 
would  come  into  the  expectancy  of,  an  extra  or  sur-pension,  his  con- 
tributions and^  expectancy  advancing  by  steps  as  his  salary  advanced— 
up  to  a  certain  limit — the  employer,  however,  contributing  less  gen- 
erously in  proportion  than  in  the  case  of  the  minimum  pension.    The 


280 

provision  of  a  minimum  pension  designed  to  assure  a  minimum  stand- 
ard of  comfort  for  public  employees  generally  in  their  old  age  is  be- 
lieved to  be  an  appropriate  one  to  be  maintained  by  a  governmental 
authority  as  a  model  employer,  and  one  which  represents  a  wholesome 
social  policy. 

5.    METHOD  OF  PROVIDING  FUNDS  FOR  PAYING  PENSIONS. 

There  are  two  recognized  methods  of  providing  funds  from  which 
pensions  are  to  be  paid — the  "cash  disbursement"  plan  and  the  "re- 
serve" plan. 

The  "Cash  Disbursement"  Plan. 

Under  this  plan,  the  outlay  for  pensions  is  to  be  provided  cur- 
rently as  payments  to  pensioners  become  due.  No  funds  are  set  aside 
to  accumulate  at  interest,  and  the  pension  burden  for  present  employ- 
ees is  simply  unloaded  on  the  succeeding  generation  with  the  hope  that 
the  authorities  at  such  time  will  be  both  disposed  and  able  to  pay 
such  pensions  on  some  reasonable  basis. 

The  "Reserve"  Plan. 

This  plan  is  well  described  as  a  "get  ready  for  the  future"  plan. 
It  involves  the  setting  aside,  during  the  active  service,  of  definite 
amounts,  properly  calculated  to  provide  the  benefits,  and  usually  ex- 
pressed as  a  percentage  of  the  current  wages  or  salary.  The  amounts 
so  set  aside  are  accumulated  at  interest  and  form  a  reserve  fund  out 
of  which  pension  disbursements  are  made  as  they  fall  due.  The  "re- 
serve" plan  recognizes  very  clearly,  and  makes  it  understood  by  em- 
ployer and  employee,  that  compensation  for  service  involves,  besides 
current  pay,  the  amount  that  should  be  set  aside  at  the  time  service 
is  rendered  to  provide  a  pension  for  the  employee  when  he  becomes 
inefficient  after  having  satisfied  certain  conditions.  Thus,  each  gener- 
ation of  taxpayers  pays  its  own  obligations  for  service  rendered.  Fur- 
thermore, the  employee's  equity  in  the  scheme  is  well  known  at  any 
time  on  account  of  the  reserves  held  to  his  credit. 

Unscientific  Plans  in  Illinois. 

By  an  unscientific  plan,  as  the  term  is  here  used,  we  mean  one 
under  which  certain  funds  are  created  without  making  provision  that 
these  funds  shall  be  adequate  for  the  purpose  for  which  they  are  pro- 
vided. We  shall  find  it  convenient  to  refer  to  such  plans  as  "unscien- 
tific fund"  plans.  The  pension  systems  created  under  the  law  of  Illi- 
nois are,  for  the  most  part,  operating  under  unscientific  fund  plans. 
Such  plans  have  in  some  cases  taken  on  practically  the  form  of  a 
"cash  disbursement"  plan.  For  example,  the  system  for  Chicago 
firemen  is  operating  on  practically  a  "cash  disbursement"  basis,  as 
there  was  in  this  fund  on  January  1,  1916,  only  $3,101,  whereas  the 
annual  disbursements  for  pensions  to  retired  firemen  and  their  widows 
and  children  will  for  the  year  1916  probably  amount  to  approximately 
$370,000.  Similarly,  the  system  for  Chicago  police  in  service  prior 
to  January  1,  1916,  is  operating  practically  on  a  "cash  disbursement" 
basis.  For  employees  entering  the  police  service  on  or  after  January 
1,  1916,  the  law  provides  that  the  "reserve"  plan  shall  be  adopted. 


281 


Our  investigations  reported  in  Part  I  show  that  the  character 
of  our  pension  systems  in  Illinois  could  hardly  be  looked  upon  as 
the  result  of  a  definite  pension  policy.  On  the  contrary,  these 
systems  seem  to  have  been  created  without  regard  to  the  extended, 
costly  and  embarrassing  experiments  that  have  been  tried.  The 
many  experiments  that  have  been  carried  out  in  foreign  countries 
and  those  even  now  on  trial  in  America,  have  abundantly  demon- 
strated the  consequences  of  such  plans.  To  continue  them  is  simply 
to  lead  into  situations  that,  in  general,  grow  constantly  worse,  and 
end  in  disappointment  and  failure  for  many  deserving  employees 
who  at  pensionable  age  find  that  funds  are  not  available  to  pay 
their  pensions.  Hence  in  considering  permanent  future  pension 
legislation,  we  should  withhold  approval  from  all  "unscientific  fund" 
plans. 

Advantage  of  the  "Reserve''  Plan  over  the  "Cash  Disbursement"  Plan. 

Under  the  "reserve"  plan,  the  advantage  of  compound  interest 
over  a  long  period  of  time  is  secured,  which  reduces  the  apparent 
cost  of  pensions  to  less  than  one-half  the  apparent  cost  under  the 
"cash  disbursement"  plan.  The  same  amounts  may  actually  be 
paid-  in  benefits,  but  the  pension  cost  under  the  reserve  plan  re- 
quires that  a  much  smaller  percentage  of  the  pay  roll  be  set  aside 
currently  to  provide  future  pensions  than  is  ultimately  necessary 
under  a  cash  disbursement  plan.  For  example,  if  the  Chicago  police 
system  operates  on  a  "cash  disbursement"  plan  in  the  future,  and 
continues  its  present  provisions  in  regard  to  pensions  to  employees 
and  their  widows  and  children,  it  will  require  in  the  ultimate  "nor- 
mal" state-^the  time  when  the  system  will  be  carrying  its  normal 
load  as  a  going  system — that  34.3  per  cent  as  much  as  the  pay  roll 
for  wages  and  salaries  be  contributed  currently  for  pensions.  If, 
on  the  other  hand,  the  system  were  o'perated  on  the  "reserve"  plan, 
the  current  annual  contributions  to  be  accumulated  to  pay  the 
same  pensions  would  amount  to  only  13.8  per  cent  as  much  as 
the  pay  roll  for  wages  and  salaries.  Similarly,  the  system  for  the 
Chicago  firemen  will,  in  the  ultimate  "normal"  state,  require  on 
the  cash  disbursement  plan  36.6  per  cent  as  much  for  pensions  as 
for  salaries. 

Our  interpretation  of  these  facts  is  briefly  that  an  item  for 
pensions  of  approximately  35  per  cent  of  salaries  and  wages  should 
be  regarded  as  too  large  an  expenditure  for  pensions,  and  that  we 
should  avoid  approaching  such  a  state  of  affairs  by  adopting  a 
"reserve"  system. 

Furthermore,  the  accumulation  of  reserves  constitutes  an  im- 
portant safeguard  against  the  repudiation  of  pension  obligations 
when  the  current  pension  payments  become  so  large  in  proportion 
to  the  pay  roll  as  to  constitute  a  serious  burden.  While  there  may 
be  a  difference  of  opinion  on  the  question,  it  seems  highly  probable 
that  if  the  time  comes,  as  it  surely  will  under  the  plans  in  opera- 
tion, when  the  public  treasury  must  furnish  considerably  over  30 
per  cent  as  much  currently  for  pensions  to  policemen  and  firemen  and 
their  widows  as  for  salaries,  there  is  very  great  danger  of  such 


282 

tnodification  as  will  bring  serious  hardship.  It  is  certain  that  the 
"cash  disbursement"  plan  has  nothing  to  insure  the  permanence  of 
the  system,  while  scientifically  calculated  reserves  do  much  to  in- 
sure permanency.  To  be  sure,  changes  will  no  doubt  be  made  from 
time  to  time  under*  a  "reserve"  plan,  but  they  will  necessarily  be 
made  so  as  to  carry  forward  to  any  new  system  the  credits  of  an 
employee  in  the  existing  system  and  thus  to  safeguard  his  equity  in 
the  fund. 

Contributions  for  Pensions    are  Essentially    a  Part  of    Wages    and 
Salaries. 

Whether  the  contribution  to  a  pension  fund  be  taken  wholly 
from  the  employee's  wages  or  salary,  or  be  paid  wholly  by  the  em- 
ployer, or  be  derived  in  part  from  each,  these  contributions  are  in 
all  three  cases  to  be  regarded  as  in  reality  a  deduction  from  wages 
or  salary.  It  is  the  opinion  of  students  of  the  pension  problem  that 
the  existence  of  a  pension  system  in  connection  with  any  position 
or  employment  is  taken  into  account  by  both  parties  to  the  contract 
of  employment,  and  that,  broadly  speaking,  wages  and  salaries 
actually  paid  are  in  due  course  reduced  below  what  they  otherwise 
would  be  by  the  amount  of  the  total  contributions  from  both  the  em- 
ployer and  employee  to  a  pension  fund.  The  employee  will  thus  pay  for 
his  pension  by  deductions  from  his  wages  or  salary,  whether  he  is 
conscious  of  it  or  not.  Indeed  it  is  quite  possible  that  with  a  sound 
fund  in  existence  the  reduction  in  wages  and  salaries  may  in  time 
materially  exceed  the  amount  of  the  total  contributions,  owing  to 
the  advantages  of  such  a  fund  to  the  employee  under  present  eco- 
nomic conditions.  This  consideration  further  emphasizes  the  ad- 
vantage to  the  employer  of  having  such  a  fund  established. 

Table  to  be  Used  in  Computation. 

In  our  actuarial  calculations  in  Part  I  to  determine  the  probable 
future  cost  of  pensions,  we  found,  for  certain  funds  that  had  adequate 
experience,  the  rates  of  mortality,  rates  of  withdrawal  from  the 
service  by  resignation  or  dismissal  and  rates  of  retirement  on  pensions 
at  various  ages,  and  used  these  in  the  prediction  of  future  costs.  For 
the  tentative  plan  which  we  are  proposing,  it  is  clear  that  the  rates 
of  retirement  on  pensions  that  have  been  experienced  would  not  apply, 
nor  do  we  need  for  the  proposed  plans  to  know  the  rates  of  retire- 
ment. Neither  do  we  need  to  know  under  our  proposed  plans  the 
rate  of  withdrawal  from  the  service  by  resignation  or  dismissal.  We 
need  to  know  rates  of  mortality,  and  in  this  we  are  mainly  concerned 
with  rates  at  ages  above  the  minmum  ages  of  retirement  from  service, 
although  on  account  of  pensions  to  widows  and  to  certain  disabled  em- 
ployees, we  have  some  need  for  rates  at  lower  ages. 

While  policemen  and  firemen  show  low  rates  of  mortality  below 
age  forty,  they  show,  for  ages  above  the  minimum  ages  proposed  for 
retirement  from  service,  rates  that  are  higher  than  those  in  the  Ameri- 
can Experience  Table  of  Mortality. 

Similarly,  the  American  Experience  Table,  from  age  55  upward, 
gives  rates  of  mortality  that  are  lower  than  those  for  male  teachers 
who  have  been  on  the  pension  roll  in  New  York  City.  The  rates  of 


283 

lortality  for  widows  and  for  female  teachers  who  have  been  on  pen- 
sion rolls  in  New  York  are  lower  than  the  rates  given  in  the  American 
Experience  Table.  Our  experience  with  mortality  among  Chicago 
teachers  on  pensions  is  too  meager  to  draw  a  conclusion.  When  we 
view  the  group  of  employees  as  a  whole,  and  when  we  bear  in  mind 
that  under  our  tentative  plan  a  certain  saving  is  effected  because  em- 
ployees will  stay  in  service  beyond  the  minimum  age  for  retirement, 
it  seems  best  to  compute  annuities  on  the  basis  of  the  American  Ex- 
perience Table  in  illustrating  the  operation  of  that  plan  in  Chapter 
II. 
6.  RATIO  OF  EMPLOYERS'  CONTRIBUTIONS  TO  THOSE  OF  EMPLOYEES. 

As  set  forth  in  the  chapters  of  Part  I  dealing  with  the  history 
of  pensions  in  Europe  and  in  Illinois,  practice  differs  greatly  as  to 
the  amount  of  the  contributions  of  the  employer  in  comparison 
with  those  of  the  employee  to  provide  for  pensions.  At  the  one 
extreme  are  found  a  considerable  number  of  instances  where  the 
employer  contributes  the  whole  amount,  and  at  the  other  extreme 
a  lesser  number  of  cases  where  the  employees  contribute  the  whole 
amount.  Most  cases,  however,  fall  between  these  two  extremes, 
but  in  these  cases  the  ratio  of  contributions  as  between  employer 
and  employee  varies  greatly. 

As  a  general  principle,  it  seems  desirable  that  these  contri- 
butions should  be  shared  by  both  employer  and  employee:  first, 
because  this  relation  is  a  natural  basis  for  the  joint  management  of 
the  pension  system  as  between  the  two  parties,  which  is  believed  to  be 
wise ;  and,  second,  because  when  both  parties  contribute,  each  is 
certain  to  have  a  more  definite  and  real  sense  of  what  has  thus  to 
be  diverted  from  wages  or  salaries  to  provide  the  requisite  funds 
for  paying  pensions  than  would  be  true  if  only  one  of  the  two 
parties  contributed. 

As  to  what  should  be  the  ratio  which  should  exist  between  the 
contributions  of  the  employer  and  the  employee  there  is  at  least 
a  certain  superficial  propriety  in  having  each  contribute  equally ; 
and  the  Commission  recommends  this  ratio  not  for  the  minimum 
but  for  the  additional  or  sur-pension,  specified  above  for  the 
higher  paid  employees.  Inasmuch,  however,  as  the  contribution  of 
the  employer  is  naturally  regarded  by  the  employee  as  more  or  less 
in  the  nature  of  a  bonus,  and  tends,  therefore,  to  encourage  the  em- 
ployee, as  a  means  of  securing  such  bonus,  to  sustain  his  own  con- 
tributions, even  though,  owing  to  a  low  salary,  this  may  at 
times  mean  a  burden  difficult  for  him  to  bear,  it  seems  wise  to 
increase  this  encouragement  by  providing  that  in  the  case  of  a 
minimum  pension,  designed  primarily  for  the  lower  paid  employees, 
the  employer  should  contribute  more  than  the  employee.  The 
principle  that  a  larger  contribution  should  be  made  by  the  em- 
ployer in  this  case  will  probably  commend  itself  to  the  public  also 
on  the  general  ground  that  it  will  tend  to  aid  those  most  in  need 
of  aid.  Furthermore,  the  Commission  feels  that  there  is  special 
ground  for  making  the  employer's  contribution  rather  liberal  as  a 
help  toward  providing,  in  a  revised  pension  system,  for  the  heavy 

—19  P  L 


284 

liabilities  resting  upon  the  existing  pension  systems,  as  explained 
above. 

Refunds  of  Contributions. 

When  an  employee,  after  contributing  to  a  pension  fund  for 
any  time,  is  separated  from  the  public  service  by  resignation,  dis- 
missal or  death,  an  equity  in  the  form  of  a  pension  expectation 
exists,  and  it  is  unfair  not  to  recognize  this  fact.  If  his  direct  con- 
tributions are  returned  with  interest  at  4  per  cent,  he  may  well  regard 
his  contributions  as  put  into  a  savings  institution.  And  since  the  em- 
ployer fails  in  such  cases  to  get  that  long  continued  service  which  is 
one  of  the  chief  objects  for  which  he  contributes  to  pensions,  it  seems 
appropriate  that  the  contributions  of  employer  should  revert  to  the 
credit  of  the  employer. 

It  is  clear  from  the  experience  of  the  civil  service  employees  of 
Great  Britian  that  we  ought  to  treat  the  direct  contributions  of  em- 
ployees as  their  savings  to  be  returned  when  they  give  up  their  pension 
expectations.  With  a  system  in  which  contributions  are  returned  with 
interest,  one  of  the  main  objections  to .  substantial  direct  contributions 
from  employees  is  removed.  Much  of  the  dissatisfaction  with  con- 
tributory civil  service  pension  laws,  that  have  been  long  enough  in 
operation  to  test  the  effect  of  the  service,  arises  out  of  the  forfeitures 
that  are  experienced  when  such  refunds  are  not  made. 

7.    MANAGEMENT. 

With  a  view  to  utilizing  the  special  knowledge  and  interest  of  the 
beneficiaries  under  existing  pension  systems,  and  recognizing  also 
that  the  problems  arising  in  connection  with  the  provision  of  pensions 
for  one  class  of  employees  often  differ  materially  from  those  for  an- 
other class,  the  Commission  deems  it  advisable  that  the  more  import- 
ant existing  pension  systems  which  are  now  under  separate  manage- 
ment, should  continue  under  separate  management.  It  is  likewise  felt 
to  be  desirable,  in  accordance  with  our  recommendation  that  contribu- 
tions for  pensions  be  made  in  part  by  the  employer  and  in  part  by  the 
employee,  that  the  administration  of  pension  systems  should  be  car- 
ried on  by  representatives  of  both  these  parties.  We  feel  it  equally 
desirable  too  that  the  administration  of  the  different  systems — which 
we  think  should,  if  possible,  be  reduced  very  much  below  their  pres- 
ent number  of  35 — should  be  unified,  not  only  by  having  the  State 
Superintendent  of  Insurance  prescribe  forms  for  their  records  and  re- 
ports, but  also  by  having  the  same  chairman  for  each  of  the  important 
Chicago  pension  boards,  and  one  or  more  other  members  common  to 
these  boards.  Details  of  the  proposed  plan  are  set  forth  in  the  follow- 
ing chapter. 


285 


CHAPTER  II. 


OUTLINE  FOR  A  PENSION  PLAN  ON  A  RESERVE  BASIS, 

AND  PROVISIONS  FOR  BRINGING  EXISTING 

PUBLIC  PENSION  FUNDS  IN  ILLINOIS 

UNDER  THIS  PLAN. 

The  purpose  of  this  chapter  is  to  set  forth  the  concrete  provisions 
of  what  might  be  called  a  standard  pension  plan  for  State  and  muni- 
cipal employees,  in  accordance  with  the  principles  presented  in  the 
foregoing  chapter,  and  to  indicate  a  feasible  method  for  placing  the 
existing  public  pension  funds  in  Illinois,  on  that  basis. 

The  figures  employed  in  this  chapter  which  refer  to  terms  of 
service,  age,  amounts  of  pension  and  amounts  or  ratios  of  contribu- 
tions by  employers  and  employees  are  used  for  purposes  of  illustration 
rather  than  as  definite  recommendations. 

The  plan  includes  the  following  as  its  main  features : 

1.  Contributions  are  required   from  both  the  employer  and  the 
employee,  and  in  amount  sufficient  to  place  the  pension  fund  on  a 
reserve  basis. 

2.  All  employees  who  have  completed  a  specified  minimum  per- 
iod of  service  and  attained  a  specified  minimum  age,  receive  a  speci- 
fied minimum  pension.     Toward  the  cost  of  this  minimum  pension 
the  employee  contributes  one-fourth  and  the  employer  three- fourths 
of  the  necessary  amount.     Employees  drawing  $1,000  or  more  in  sal- 
ary receive  an  additional  or  sur-pension  varying  in  amount  with  salary, 
all  salaries  above  $2,500  being  counted  as  of  that  sum.     Toward  the 
cost  of  this   sur-pension  the  employee  contributes  one-half  and   the 
employer  one-half. 

Employees  who  have  fulfilled  only  in  part  the  conditions — in 
respect  to  contributions,  period  of  service  and  age  for  minimum  or 
sur-pension,  are  protected  in  their  equities. 

Employees  disabled  in  the  performance  of  duty  receive  full  pen- 
sion reduced  by  the  amount  of  any  recovery  under  the  Workmen's 
Compensation  Act.  Those  disabled  otherwise  than  in  the  performance 
of  duty  receive  certain  equities. 

All  employees,  or  their  representatives,  receive  in  pension  or  re- 
fund at  least  all  their  contributions,  with  interest. 

Pensions  are  provided  for  widows  and  children,  although  such 
pensions  need  not  be  included  in  the  standard  plan. 

3.  A  scheme  is  proposed  for  unified  administration  of  different 
pension  funds. 

The  method  proposed,  for  bringing  existing  pension  funds  under 
the  foregoing  plan  involves  the  gradual  accumulation  of  a  fund  to 
meet  the  accrued  liabilities,  by. requiring,  for' a  period  of  years,  greater 


286 

payments  from  present  employees  and   from  the  employer  than  are 
required  from  new  entrants  under  the  proposed  standard  system. 

DEFINITIONS. 

The  following  words  and  phrases  shall,  unless  otherwise  stated, 
have  the  following  meanings  in  the  succeeding  provisions: 

(a)  A  "pension"  means  an  annuity. 

(b)  A  "service  pension"  means  a  life  annuity  to  an  employee, 
beginning  at  or  after  the  minimum  age  of  retirement. 

(c)  A  "minimum  pension"  means  a  pension  of  a  fixed  amount, 
to  which  all  employees;  or  all  in  a  specified  service,  shall  be  entitled, 
who   have   completed  the   minimum   required   length   of   service  and 
attained  the  minimum  age  of  retirement. 

(d)  A  "sur-pension"  means  a  pension  in  addition  to  a  minimum 
pension. 

(e)  "Minimum  age  of  retirement"  means  the  age  at  which  the 
employee  in  the  particular  service  shall  be  entitled  to  retire  and  re- 
ceive a  service  pension. 

(f)  "Disability"  means  a  disability  disqualifying  an  employee  for 
service. 

(g)  "Employer"  means  the  state,  county,  city,  town,  village,  or 
district  from  which  the  employee  as  such  receives  salary  or  wages. 

(h)  "Interest"  means  interest  compounded  annually,  and  unless 
otherwise  specified,  at  the  rate  of  4  per  cent  per  annum. 

SPECIFIC  PROVISIONS  OF  PROPOSED  STANDARD  PEN- 
SION PLAN. 

1.    EMPLOYEES   TO  WHOM   PLAN   SHOULD  APPLY. 

All  State  and  municipal  employees  in  Illinois,  so  far  as  their  per- 
manency and  the  manner  of  their  grouping  will  allow,  shall  be  included 
under  this  pension  plan,  by  appropriate  legislation  which  shall  be  ad- 
justed to  such  groupings  as  is  practicable,  and  which  shall  involve  the 
further  provisions  indicated  in  the  sections  below. 

NOTE. — The  permanency  required  should  be  that  assured  to  public  school 
teachers  under  the  certificate  plan  and  to  other  employees  on  civil  service  tenure. 
Employees  need  also  to  be  so  situated  that  not  less  than  perhaps  a  minimum  num- 
ber of  500  should  be  associated  in  any  independent  pension  plan,  any  smaller 
number  being  insufficient  for  reliable  computations  as  to  future  pension  cost.  It 
is  important  to  determine  what  is  the  best  practicable  plan  of  grouping  public 
employees  for  pension  purposes.  Two  principles  need  to  be  kept  in  mind  in  this 
connection.  One  is  that  for  these  purposes  there  are  certain  advantages  to  be 
derived  from  associating  together  under  a  given  pension  plan  employees  whose 
circumstances  of  employment  are  similar.  The  second  is  that  the  larger  the 
number  of  employees  included  in  a  pension  system,  the  greater  the  economy  of 
administration  and  the  more  reliable  the  actuarial  computations  which  can  be 
made  concerning  future 'costs. 

A  great  number  of  different  classifications  of  public  employees  for  pension 
purposes  is  possible.  There  are  in  Illinois  at  the  present  time  three  types  of 
such  classifications. 

One  is  illustrated  by  the  State  teachers'  pension  fund.  This  includes  under 
a  single  pension  plan  all  public  school  teachers  in  Illinois  other  than  those  in  two 
excepted  cities.  These  teachers  are  employees  in  one  kind  of  service,  but  are 
scattered  in  a  great  number  of  local  political  areas  of  different  sizes  ;  yet  they  are 
all  included  under  one  pension  plan. 

The  second  is  illustrated  by  the  Chicago  policemen's  fund.  In  this  case  the 
employees  are  all  in  one  departmental  service  and  one  political  area. 

The  third  is  illustrated  by  the  Chicago  municipal  employees'  pension  fund. 
In  this  case  the  employees  are  drawn  from  a  variety  of  departmental  services  rep- 
resenting almost  the  entire  field  of  city  government,  but  all  belonging  to  one 
political  area. 


287 

No  case  is  made  out,  or  indeed  being  urged,  for  changing  any  of  the  three 
illustrative  instances  mentioned.  In  view  of  the  fact,  however,  that  of  the  35 
independent  pension  funds  now  existing  in  Illinois  at  least  30  include  fewer  em- 
ployees than  the  minimum  500  above  mentioned,  it  is  not  only  desirable  but  es- 
sential, for  financial  soundness  based  on  actuarial  knowledge,  to  effect  combina- 
tion in  some  manner  among  these  groups,  so  that  no  separate  pension  system 
shall  fall  below  this  minimum  in  number  of  employees.  Aside  from  the  55,000 
employees  related  to  the  35  pension  funds  mentioned,  there  are  also  something 
over  22,000  other  employees  whose  need  of  pensions  is  presumably  equally  great, 
but  who  are  now  beyond  the  scope  of  any  existing  fund.  Whether  the  combination 
indicated  should  be  secured  by  grouping  under  one  fund  the  employees  in  all 
services  in  a  given  political  area,  or  by  grouping  all  employees  in  the  same  service 
in  a  great  number  of  political  areas,  or  by  some  other  method,  is  a  question  which 
should  be  determined  after  a  more  extended  study  of  the  subject  than  this  Com- 
mission has  been  able  to  make. 

2.    CONTRIBUTIONS  BY  BOTH  EMPLOYER  AND  EMPLOYEE. 

Contributions  to  the  pension  fund  shall  be  made  in  part  by  the 
employer  and  in  part  by  the  employee. 

NOTE. — In  some  public  pension  systems  the  contributions  are  made  entirely 
by  the  employer,  in  others  entirely  by  the  employee,  but  in  most  they  are 
made  partly  by  the  employer  and  partly  by  the  employee.  The  Commission  re- 
gards all  these  contributions,  from  whichever  party  received,  as  essentially  de- 
ductions from  salary  or  wages.  It  is  felt  accordingly  that,  in  the  long  run  at 
least,  salaries  and  wages  actually  paid  in  a  service  where  a  pension  system  exists 
will  be  lower  than  in  a  corresponding  service  where  a  pension  system  does  not 
exist,  by  the  amount  of  the  contributions  made  to  the  pension  system  and  irre- 
spective of  whether  the  contributions  are  made  by  the  employer  or  the  employee. 
At  the  same  time,  the  plan  of  having  contributions  made  from  both  the  employer 
and  the  employee  tends  to  insure  in  both  parties  a  greater  degree  of  desirable 
interest  in,  and  a  greater  sense  of  responsibility  for,  the  fund  than  would  other- 
wise exist. 

3.  RESERVE  PLAN  TO  BE  ADOPTED. 

Such  contributions  shall  be  held  to  the  credit  of  the  individual 
employee  and  shall  be  sufficient  in  amount  to  provide,  on  the  reserve 
basis,  for  the  payment,  when  due,  of  such  pension  as  shall  be  payable 
from  the  fund. 

NOTE. — The  reserve  system  proposed  implies  that  the  contributions  from  the 
salary  of  each  employee,  together  with  the  cerresponding  contributions,  hereafter 
specified,  from  the  employer,  shall  be  held  and  accumulated  with  interest  to  the 
credit  of  such  employee  until  the  minimum  age  of  retirement,  and  be  then  available 
to  be  drawn  upon  for  such  pension  as  their  amount  will  at  that  time  provide.  This 
reserve  plan  involves  the  keeping  of  an  individual  account  with  each  employee. 

The  reserve  plan  has  not  been  adopted  in  most  public  pension  funds,  but  it 
has  been  alleged  or  supposed  by  the  beneficiaries  to  be  in  effect  in  respect  to  many 
such  funds.  Moreover,  it  is  regarded  by  the  Commission  as  the  only  plan  by 
which  the  financial  soundness  of  a  pension  fund  can  be  assured  and  the  proper 
payments  for  public  service  be  made  at  the  time  they  are  rendered,  instead  of  being 
left  for  payment  at  some  later  time,  with  no  certainty  of  their  being  actually 
paid  at  that  time. 

4.  WHO  ARE  TO  RECEIVE  PENSIONS. 

From  this  fund  pensions  shall  be  payable  as  follows:  To  em- 
ployees from  whose  salaries  deductions  for  the  fund  have  been  made 
as  provided  below,  and  to  their  widows  and  children. 

When  employees  have  completed  20  years  of  service  and  attained 
the  age  of  55,  or  at  any  time  after  they  have  fulfilled  these  conditions, 
they  shall  be  entitled  to  receive  from  the  fund  the  minimum  pension 
specified  below,  and  any  sur-pension  for  which  contributions  have 
been  accumulated  as  provided  below. 

If  an  employee  who  is  receiving  or  entitled  to  receive  such  pen- 
sion or  sur-pension,  is  a  male  and  dies  leaving  a  widow,  to  whom  he 
was  married  before  he  was  of  age  55,  she  shall  be  entitled  to  receive 
thereafter  the  widow's  pension  specified  below. 


288 

If  an  employee,  entitled  to  receive  such  pension  or  sur-pension, 
dies  leaving  one.  or  more  children,  each  child  shall  be  entitled  to  receive 
the  child's  pension  specified  below. 

NOTE. — This  section  states  the  chief  requirements  for  eligibility  to  pension  in 
the  ordinary  case,  and  also  names  the  persons  who  are  to  be  beneficiaries  in  that 
case.  As  to  those  requirements,  pension  practice  differs.  In  the  majority  of 
cases,  however,  two  are  insisted  upon:  namely,  the  completion  of  a  definite  and 
considerable  'period  of  service,  and  the  attainment  of  a  specified  and  more  or 
less  advanced  age.  These  two  requirements  are  designed,  among  other  things,  to 
induce  continuity  of  service  and  to  provide  definite  bases  for  pension  calculations. 
These  basic  provisions  are  .adjusted  according '  to  the  prevailing  practice  of  the 
service  and  according  to  the  requirements  of  the  great  majority  of  employees. 
Not  a  few  exceptional  cases,  however,  must  arise  where  for  various  reasons  the 
employee  is  unable  to  fulfill  these  requirements,  although  he  has  more  or  less 
closely  approximated  that  result.  The  question  of  how  to  meet  the  equities  in- 
volved in  these  cases  is  a  problem  of  no  little  difficulty,  and  one  which  requires 
careful  study  of  possible  graduations  and  adjustments  under  this  plan.  With  a 
requirement,  for  example,  of  20  years'  service  as  a  prerequisite  for  eligibility  to 
pension,  the  precise  provisions  which  should  be  made  to  conserve  the  equities  of 
persons  who  have  served  somewhat  lesser  periods  involve  questions  of  obvious 
importance,  as  well  as  difficulty,  and  these  questions  are  among  those  which  the 
Commission  has  indicated  as  demanding1  further  study. 

Three  classes  of  persons  are  specified  to  receive  pensions :  namely,  the  em- 
ployee himself,  and  also  his  wi'dow  and  children.  The  practice  in  public  pension 
systems  at  the  present  time  varies  as  to  the  inclusion  or  the  exclusion  of  widow 
and  children,  and  this  variation  to  a  considerable  extent  corresponds  to  different 
services.  Pensions  are  provided  for  widows  and  children  quite  generally  in  this 
country  in  pension  funds  for  firemen  and  policemen.  They  are  quite  generally 
lacking  in  pension  funds  for  teachers  and  other  public  employees.  It  is  obvious 
that,  in  so  far  as  a  pension  system  is  designed  to  provide  for  the  actual  needs  of 
the  employee  and  his  dependents  after  his  period  of  active  service,  pensions  should 
be  provided  for  widow  and  children.  On  the  other  hand,  in  so  far  as  a  pension 
system  is  regarded  as  designed  solely  or  primarily  in  the  interest  of  efficiency 
in  the  public  service,  in  certain  service  at  last  such  pensions  contribute  much 
less  toward  that  result  than  do  pensions  for  the  employee  himself.  Such  pensions 
are  included  in  this  standard  plan  to  make  the  plan  sufficiently  inclusive  to  cover 
all  cases  and  also  to  bring  it  in.  line  with  progressive  social  policy  in  general. 
It  is  not  intended  to  imply,  however,  that  a  pension  plan  which  omitted  pensions 
for  widow  and  children  should  necessarily  be  regarded  as  deficient. 

5.    AMOUNTS    OF    PENSIONS.' 

A  minimum  pension  shall  be  $400.00. 

A  sur-pension  shall  be  such  amount  as  the  contributions  made 
therefor,  as  prescribed  below,  will  provide,  when  the  employee  is  of 
age  55. 

The  widow's  pension  if  she  is  5  years  younger  than  her  husband 
shall  be  two-thirds  the  amount  of  the  minimum  pension  and  of  any 
sur-pension  which  her  husband  is  receiving  or  is  entitled  to  receive 
at  the  time  of  his  death.  If  the  widow  is  older  or  younger  than  stated,] 
her  pension  shall  be  increased  or  decreased  in  amount  depending  on 
what  can  be  provided  in  pension  by  the  then  accumulated  fund  for 
a  widow's  pension. 

A  child's  pension  shall,  if  the  mother  is  living,  be  $10.00  per 
month  to  the  age  of  18,  except  that  it  shall  be  only  $5.00  per  month1 
between  the  age  of  14  and  the  age  of  18,  when  the  child  is  not, 
attending  school ;  and  if  the  mother  is  not  living,  the  child's  pension! 
shall  in  all  cases  above  specified  be  $5.00  more  per  month  than  the] 
amounts  stated. 

NOTE.— The  theory  set  forth  in  Chapter  I  is  that,  under  existing  variations  in 
salary,  pensions  should  vary  to  some  extent  accordingly,  but  that  a  certain  mini- 
mum amount  to  provide  for  security  in  old  age  should  be  insured  to  all  empl 
included   in   the  pension   system. 

The  minimum  of  $400  00  taken  for  illustrative  purposes  above  has  the  ad-< 
vantage  of  being  the  amount  of  the  pension  now  provided  for  in  the  largest  class 
of  public  employees;  namely,  the  public  school  te.-u-hers,  who  comprise  nearly  hall 
of  the  total  number  of  State  and  municipal  employees  in  Illinois.  However,  the; 
requirement  that,  for  employees  receiving  a  thousand  dollars  or  more,  a  fund  for 
an  additional  pension  shall  be  accumulated,  but  a  less  percentage  of  which  shall 


2S9 

be  contributed  by  the  employer,  will  make  pensions  in  actual  practice  vary  from 
the  minimum  of  say  $400.00  to  maxima  as  shown  in  the  illustrative  calculations 
at  the  end  of  this  chapter. 

Under  this  section  funds  will  be  accumulated  as  if  each  male  employee  has  a 

v  ears  younger  than  himself  at  the  time  when  he  reaches  55.     Clearly  if 

his   \\itV    is   relatively  older  than   is   indicated  by   our  .assumption,  a  larger  pension 

th;m   t\vo-il.i'-.ls  of  the  pension  for  an  employee   can   be   provided   for  her  with   the 

funds  available;  whereas,  if  she  is  younger  than  is  indicated  by  our  assumption, 

Man  two-thirds  of  the  pension  for  an  employee  is  all  that  can  be  provided  for 

ith    the   funds    available. 

The  actuarial  difficulties  encountered  in  making,  in  advance,  reliable  de- 
lenn  mat  ions  of  the  cost'of  children's  pensions,  are  so  great  and  the  amount  in- 
volved is  so  comparatively  small,  that  it  seems  good  practice  to  allow  the  cost  of 
children's  pensions  to  be  borne  entirely  by  the  employer. 

6.    CONTRIBUTIONS. 

(a)  For  Minimum  Pension  for  Employees. 

From  the  salary  of  each  employee  35  years  of  age  or  less,  when 
this  .plan  is  inaugurated,  and  from  the  salary  of  each  employee  there- 
after entering  the  service  at  35  years  of  age  or  less,  a  certain  sum 
shall  be  deducted  by  the  employer  each  month  and  placed  in  the  pen- 
sion fund.  This  sum  shall  be  one- fourth  of  the  amount  which,  with 
interest,  would  be  necessary  to  accumulate,  in  equal  monthly  amounts, 
a  fund  sufficient  to  provide  such  employee  at  age  55  a  pension  of 
$400.00,  and  if  such  employee  be  a  male,  then  sufficient  to  provide 
also  a  widow's  minimum  pension  for  a  wife  counted  as  five  years 
younger  than  himself. 

The  employer  shall  contribute  each  month  to  the  pension  fund 
three  times  the  amount  so  deducted  from  the  employee's  salary. 

(b)  For  Suspension  for  Employee  and  Widow. 

If  the  employee  is  a  male  and  receives  $1,000  or  more  in  salary, 
all  salaries  above  $2,500  being  counted  as  of  that  sum,  the  employer 
shall  deduct  from  such  salary  and  place  in  the  pension  fund,  an  addi- 
tional amount  which,  added  to  the  deduction  from  salary  already  pro- 
vided for  in  this  section,  would  equal  three  per  cent  of  the  total  salary. 
The  employer  shall  then  contribute  an  equal  additional  amount,  and 
these  two  additional  amounts  shall  be  accumulated  until  the  employee 
is  of  age  55,  to  provide  at  that  time  such  sur-pension  for  himself  and 
such  sur-pension  for  a  widow  as  the  amounts  so  accumulated  will, 
at  that  time,  provide.  If  the  employee  is  a  female,  the  two  addi- 
tional amounts  mentioned  shall  be  reduced  by  the  amount  required  for 
the  widow's  sur-pension. 

NOTE. — The  plan   (a)   above  applies  only  to  those  employees  who  are  not  over 

•  •ars  old  when,  either  as  present  employees  or  as  future  entrants,  they  should 
come  under  this  pension  plan.  This  limitation  corresponds  to  the  requirement  in 

»n  4   above  that  to  be  eligible  for  pension  an  employee  must  have  completed 

.•'st  I'n  yr-ars  of  service  at  age  55.  It  will  be  understood  that  the  employees 
intended  in  (a)  above  would  not  include  any  who  were  already  contributing  to 
some  then  existing  pension  fund.  The  special  method  recommended  for  bringing 
an  existing  fund  into  conformity  with  the  standard  plan  herein  presented  is 
dealt  with  further  on. 

It  is  provided  above  that  for  the  minimum  pension — designed  especially  for 
the  lower  paid  employees,  or  as  a  basis  of  contribution  during-  such  period  as  they 
be  lower  paid — the  employer  shall  contribute  three  times  as  much  as  the 
employee.  On  the  other  hand,  for  the  employee  who  receives  a  higher  salary  and 
presumably  adopts  a  corresponding  plan  of  living  expenses,  an  additional  or  sur- 
pension  is  provided,  but  toward  this  the  employer  contributes  not  three  times  as 
much  as  the  employee,  but  the  same  amount  as  the  employee  ;  and  no  salary  for 
the  purposes  of  this  sur-pension  can  be  treated  as  being  more  than  $2,500.  The 

'  al  consideration  of  social  policy  on  which  these  provisions  for  a  minimum 
pension  and  a  sur-pension  rest  are  set  forth  in  Chapter  I.  pages  278  and  279. 

The  three  per  cent  specified  will,  in  the  case  of  employees  entering  the  service 
at  the  customary  ages  and  remaining  until  age  60,  yield  in  minimum  and  sur-pen- 
sion a  total  amount  not  far  from  the  prevailing  standard  in  several  of  the  im- 


290 

portant  existing  pension  funds.  If  the  younger  age  of  retirement  is  adopted,  say  50 
or  55,  this  percentage  would  need  to  be  raised  correspondingly — perhaps  to  four 
per  cent  or  five  per  cent.  This  phase  of  the  subject  is  concretely  illustrated  in  the 
computations  shown  on  pages  295  to  298. 

7.    EQUITIES   PROTECTED. 

(a)  Refunds. 

An  employee  separated  from  the  service,  or  his  representatives, 
shall  at  any  time  be  entitled  to  receive  a  refund  equal  to  all  the  de- 
ductions theretofore  made  from  his  salary,  with  interest  not  beyond 
age  55,  less,  however,  any  amounts,  with  interest  not  beyond  age  55, 
theretofore  received  by  him  in  pension  for  reasons  other  than  disa- 
bility incurred  in  the  performance  of  duty.  The  taking  of  such  re- 
fund cancels  all  rights  of  the  employee  or  his  dependents  in  the  pen- 
sion fund. 

If  an  employee  received  such  refund  before  age  55,  the  contri- 
butions toward  his  pension  account  theretofore  made  by  the  employer, 
with  interest,  shall  be  held  to  the  credit  of  the  employer  and  applied 
in  reduction  of  what  would  otherwise  be  the  employer's  contributions 
in  this  service  the  following  year. 

At  age  55,  any  unmarried  male  employee  still  in  service  or  on  pen- 
sion shall  be  entitled  to  receive  a  refund  of  the  amounts  of  the  de- 
ductions theretofore  made  from  his  salary  toward  a  widow's  pen- 
sion, with  interest. 

(b)  Retirement  after  20  years  of  service  before  age  55. 

If  an  employee  retires  after  20  years  of  service,  but  below  the 
age  of  55,  he  may  continue  up  to  that  age  to  pay  to  the  fund  monthly 
an  amount  equal  to  the  deductions  being  made  from  his  salary  for  the 
pension  fund  at  that  time,  plus  the  corresponding  contributions  re- 
quired from  the  employer.  He  shall  then  be  entitled,  at  the  age  of 
55,  to  the  same  pension  rights  for  himself  and  his  widow,  in  case 
there  should  be  such,  as  if  he  had  continued  in  the  service  to  that 
time. 

NOTE. — The  gist  of  the  first  paragraph  in  this  section  is  that  all  employees 
or  their  representatives  shall  receive  back  in  pension  or  in  refunds  their  total 
contributions,  with  interest  to  age  55,  if  they  continue  so  long  in  the  service. 

The  provision  in  (b)  above,  allowing  the  employee  who  has  served  20  years, 
but  is  not  55  years  old,  to  avail  himself  of  certain  conditions  not  only  of  deduc- 
tions from  his  own  salary,  but  of  the  contributions  made  by  the  employer,  in- 
creases somewhat  the  flexibility  of  the  system,  and  without  financial  injury  to  the 
fund.  Additional  flexibility  could  be  secured  by  permitting  the  employee  who  has 
served  the  required  period,  but  has  not  attained  age  55,  or  indeed  an  employee 
who  has  served  somewhat  less  than  the  required  period,  to  retire  and  receive  such 
pension  as  the  fund  then  to  his  credit  would  purchase.  Such  permission  granted 
unconditionally  would  undermine  the  essential  object  of  a  pension  system  in  so  far 
as  it  is  directed  to  insuring  pensions  adequate  in  amount  for  old  age.  The  ad- 
visability of  granting  such  permission,  however,  subject  to  certain  conditions,  is 
one  of  the  questions  which  merit  further  study. 

8.    PENSION   FOR  DISABLED  EMPLOYEES. 

(a)  If  an  employee  from  whose  salary  deductions  have  been 
made,  as  provided  above,  but  who  has  not  reached  the  age  of  55, 
is  disabled  in  the  performance  of  duty,  he  shall  be  entitled  during  such 
disability,  to  receive  minimum  and  sur-pensions,  as  though  he  had, 
when  such  disability  was  incurred,  reached  the  age  of  55.  Moreover, 
his  rights  in  all  cases  respecting  minimum  and  sur-pension  and  the 
equities  specified  in  Section  7  above,  and  the  rights  of  his  wife,  if  there 
be  a  wife,  to  widow's  minimum  and  sur-pension,  shall  be  the  same 


291 

as  if  during  such  disability,  he  had  continued  in  the  service  and  de- 
ductions had  been  made  from  his  salary  for  the  pension  fund  as  at 
the  time  when  such  disability  was  incurred. 

(b)  If  the  employee   from  whose  salary  deductions  have  been 
made,  as  provided  above,  is  killed  in  the  performance  of  duty  or  dies 
from  injuries  received  in  the  performance  of  duty,  and  leaves  a  widow, 
she  shall  then  be  entitled  to  the  same  minimum  and  sur-pension  as 
she  would  have  been  entitled  to,  had  he  died  at  the  age  of  55. 

(c)  If  an  employee  is  injured  or  killed  in  the  performance  of 
duty,  or  dies  from  injuries  received  in  the  performance  of  duty,  and 
there  results  a  right  to  recover  under  the  Workmen's  Compensation 
Act — in  this  case  any  amount  which  he  or  his  widow  would  otherwise 
be  entitled  to  receive  in  pensions,  shall  be  reduced  by  the  amount 
recovered  under  that  act,  lump  sum  payments  thereunder  being  equit- 
ably set  off  as  the  capitalized  value  of  corresponding  pension  rights. 

(d)  While  an  employee  is  receiving  a  disability  pension  and  up 
to  the  age  of  55,  the  employer  shall  contribute  to  the  pension  fund  as 
though  deductions  were  still  being  made  from  the  employee's  salary  for 
that  fund;  and  an  amount  equal  to  what  such  deductions  would  have 
been  during  any  year,  shall  be  added  the  following  year,  pro  rata, 
to  the  deductions  actually  made  during  that  year  from  all  employ- 
ees' salaries  for  the  pension  fund. 

(e)  The  employer  shall  contribute  the  full  amount  of  the  wid- 
ow's pension  specified  in  (b)  above,  up  to  the  date  when  the  husband, 
had  he  survived,  would  have  reached  the  age  of  55. 

NOTE. — The  desire  to  make  provision  for  cases  where  an  employee  is  killed  or 
injured  during-  service  and  especially  in  the  performance  of  duty — in  other  words, 
the  desire  to  provide  against  hazard  of  personal  injury — has  been  an  important 
factor  in  the  development  of  public .  pension  systems.  More  recently  the  dominant 
object  has  been  to  provide  for  old  age,  and  workmen's  compensation  legislation 
has  come  into  existence  as  a  method  specifically  designed  to  care  for  employment 
hazards.  The  substitution,  however,  of  workmen's  compensation  for  pension  is 
only  partly  complete,  as  is  shown  by  the  fact  that  the  Illinois  Workmen's  Com- 
pensation Act  is  designed  to  provide  that  recovery  under  this  act  shall  be  re- 
duced by  any  pension  rights  which  the  injured  employees  may  have.  This  Com- 
mission believes  in  reversing  the  order  of  responsibility  ;  hence  the  provision  above 
for  placing  the  responsibility  for  injury  in  the  performance  of  duty  with  the 
Workmen's  Compensation  Act  and  reducing  by  the  amount  of  that  recovery  such 
pension  rights  as  would  otherwise  exist.  Indeed  pensions  for  disability  during 
service  are  retained  at  all  only  because  workmen's  compensation  legislation  at 
present  appears  not  to  provide  adequately  for  the  indicated  risks  in  public  em- 
ployment. 

In  conformity  with  the  principles  just  stated,  it  is  provided  that  the  full  cost 
of  disability  pensions  should  be  borne  by  the  employer — pension  after  age  55  not 
being  regarded  as  disability  pension  for  this  purpose.  The  provision  for  charging 
pro  rata  to  all  employees  the  deductions  from  the  employee's  salary  which  are 
interrupted  by  his  disability,  is  based  upon  the  prudential  principle  of  bringing 
to  bear  the  watchful  self  interest  of  fellow  employees,  as  being  the  best  means 
of  preventing  abuse  by  disability  pension  claimants. 

9.    PENSIONS  FOR  EMPLOYEES  INJURED  OR  KILLED,  BUT  NOT  IN  THE  PER- 
FORMANCE OF  DUTY. 

If  an  employee  from  whose  salary  deductions  have  been  made  for 
a  minimum,  or  a  minimum  and  a  sur-pension,  is  disabled,  but  not  in 
the  performance  of  duty,  before  the  age  of  55,  he  shall  be  entitled  to 
receive  during  such  disability,  such  pension  as  the  amount  accumulated 
from  such  deductions  and  from  the  employer's  contributions  would 
at  that  time  purchase.  If  the  employee  be  a  male,  the  amount  then 
accumulated  toward  a  widow's  pension  shall  be  accumulated  at  inter- 


292 

est  until  he  reaches  the  age  of  55  or  dies  earlier,  at  which  time  i 
shall  go  to  provide  his  wife  a  survivorship  pension  or  his  widow  a 
pension,  as  the  case  may  be. 

If  such  employee  dies,  whether  while  in  service  or  on  pen 
sion,  before  the  age  of  55,  any  refund  to  which  his  representative 
would  otherwise  be  entitled  shall  be  added  to  the  fund  at  that  tim< 
accumulated  for  his  widow's  pension,  provided  that  the  sum  thus  addec 
shall  not  increase  that  fund  beyond  what  would  provide  such  widow' 
pension  in  amount  equal  to  what  it  would  have  been  had  the  husbanc 
died  at  age  55. 

10.  SURPLUS. 

Any  balance,  lapses  or  other  amounts  in  or  falling  to,  the  fun< 
from  interest  on  accumulated  funds  after  age  55,  or  from  delayec 
acceptance  of  pensions  beyond  age  55,  or  from  any  other  source,  sha] 
go  to  the  surplus  in  the  fund  to  meet  (1)  cost  of  administration,  (2) 
any  deficiency  from  failure  to  realize  4  per  cent  interest  on  fund  in 
vestment,  (3)  cost  due  to  longevity  of  annuitants  beyond  that  usec 
in  mortality  rate  calculations ;  and  to  avoid  default,  where  necessary 
in  respect  to  any  other  provision  above. 

11.    MANAGEMENT.     • 

(a)  Each  separate  pension  fund  shall  be  managed  by  a  board  o 
five  trustees,  a  part  of  whom  shall  be  appointed  by  the  employer  am 
a  part  elected  by  the  employees. 

(b)  Where  more  pension  funds  than  one  exist  in  respect  to  th 
services  of  a  single  political  area,  the  chairman  of  each  board  of  trus 
tees  shall  be  the  same  and  shall  be  chosen  by  the  employer. 

(c)  Moneys  belonging  to  such  trustees  for  pension  purposes  shal 
in  the  case  of  funds  respecting  services  maintained  by  local  author! 
ties,  be  in  the  custody  of  the  treasurer  of  such  authority  and  other 
wise  in  the  custody  of  the  Treasurer  of  the  State. 

(d)  The  State  Superintendent  of  Insurance  shall  prescribe  form 
for  the  records  and  .reports  of  such  trustees,  with  a  view  to  making 
available  necessary  information  for  needed  calculations  as  to  pensior 
costs   and   the   adequacy   of   pension    funds ;   and   such   trustees   shal 
keep  accounts  and  make  reports,  as  so  prescribed. 

(e)  The  State  Superintendent  of  Insurance  shall  at  least  once  in 
four  years,  make  an  actuarial  examination  of  every  such  pension  func 
and  report  the  results  thereof  to  the  Legislature. 

NOTE. — Each  of  the  35  existing  pension  funds  in  Illinois  is  as  a  rule  manage 
by  a  board  of  about  five  trustees.  These  are  usually  supposed  to  represent  i 
their  personnel  both  the  employer  and  the  employee.  The  trustees  representin 
the  employee  are'  generally  elected  by  the  entire  body  of  employees  concerned 
whale  the  trustees  representing  the  employer  are  quite  apt  to  be  superior  official 
in  the  public  service  who  hold  their  positions  as  trustees  ex  officio,  and  have  n 
special  knowledge  or  interest  respecting  this  subject,  and  are  frequently  change 
as  a  result  of  political  elections. 

While  the  administration  of  these  funds  in  this  manner  has  on  the  whol 
been  reasonably  capable,  it  has  not  met  the  obvious  needs  for  proper  standardize 
tion  of  pension  practice.  To  secure  this  result  a  more  studious  attitude  and  mor 
sustained  attention  must  be  given  to  the  entire  field  of  .public  pension,  matters  i 
the  State. 

With  this  in  view,  it  is  provided  above  that  in  any  political  area  haying  mor 
pension  funds  than  one,  the  same  person  shall  be  chairman  of  each  board  o 
trustees.  For  example,  under  this  plan,  if  there  were  three  or  four  pension  funds 
say  the  teachers'  pension  fund,  another  in  the  state  charitable  institutions,  anothe 
in  the  penal  and  reformatory  institutions,  and  another  in  the  departmental  service 


293 

each  with  :i   separate  buard  of  trustees,  the  chairman  of  each  board  would  be  the 
-•m.     A  similar  arrangement  might  exist  with  respect  to  the  various  pen- 
sion  funds   in  Chicago. 

This  un.t  .  ould  naturally  tend  toward  reducing  to  a  greater  degree 

of  unii'orniii  \    the    \aried   and    often    eont radictory   principles   now    illustrated  by 
funds,  and  would  still  leave  the  way  open  1'or  such  variation  as  actual  cir- 
cumstances   might    make    desirable. 

Commission   lias   indeed   debated  the  advisability  of  having  not  only  the 

chairman   but  also   two  other   members  of  each  board  chosen  by  the  employer  and 

-mon  to  all  the  pension  funds  existing  in  any  single  political  area,  as,  for 

,ple,  in  a  State  or  in  a  local  authority.  Such  an  arrangement,  however,  would 
imolve  appointment  by  the  employer  of  a  majority  of  each  board  of  trustees 
and  \\oidd  further  increase  the  dominant  position  of  that  majority  in  each  board 
by  having-  tin-  same  three  appointed  for  all  boards  in  the  given  political  area. 
While  apparently  there  should  be  certain  distinct  administrative  advantages  in  this 
arrangement,  the  Commission  has  not  felt  sufficiently  clear  on  the  subject  to 
a.  precise  recommendation  on  this  point,  or  on  the  related  question  as  to 
\\hether  a.  majority  of  any  given  board  of  trustees  should  be  appointed  by  the 
employer  or  be  elected  by  the  employees.  The  uncertainty  of  the  Commission  on 
this  particular  is  due  in  some  degree  to  the  different  results  of  such  election  in 
the  case  of  dii  nsion  funds.  Those  results  in  certain  instances  have  not 

been  such  as  to  commend  themselves  highly  to  the  judgment  of  the  Commission. 
In  other  cases,  ho\\e\-er,  the  personnel  chosen  by  employees  has  displayed  a  very 
marked  degree  of  interest  and  intelligence  respecting  the  affairs  of  the  pension 
fund  ;  and  the  employees,  through  their  committees,  have  shown  much  information 
prudent  disposition  in  regard  to  the  pension  fund. 

As  to  (d)  and  (e)  above:  Reliable  actuarial  computations  of  future  costs 
are  a  prerequisite  for  sound  financial  pension  practice.  Some  State  agency  should 
therefore  be  chargeable  with  tht  collection  from  year  to  year,  according  to  pre- 
scribed forms  of  record  and  accounting,  of  necessary  data  to  make  such  compu- 
tations and  calculations  possible  for  all  pension  funds,  .large  or  small.  The  im- 
rred  i<>  in  S  etion  1  above,  of  making  such  reliable  calculations  for 

s  comprising  less  than  say  500  employees,  emphasizes  the  importance  of 
effecting,  as  there  suggested,  some  combination  of  the  groups  of  employees  Who 
are  at  the  present  time  included  in  the  numerous  small  pension  funds  now  exist- 
ing, or  who  are  contemplating  the  establishment  of  such  funds  in  respect  to  public 
services  in  smaller  cities  in  the  State.  Unless  some  new  State  official  is  provided 
for  this  purpose — and  this  hardly  seems  necessary  at  the  present  moment — it  would 
seem  appropriate  to  impose  this  duty  upon  the  State  Superintendent  of  Insur- 
ance. 

BRINGING  EXISTING  PENSION   FUNDS  UNDER  THE 
STANDARD  PLAN. 

In  substituting  the  standard  plan  shown  in  the  foregoing  eleven 
sections  for  the  regulations  governing  any  existing  pension  funds, 
additional  provisions  would  be  adopted  as  follows : 

1.  The  following  points  shall  be  determined  at  the  time  of  such 
substitution : 

(a)  The  total  amount  of  contributions,  with  interest,  theretofore 
made  for  pension  from  the  salary  of  each  employee  who  entered  the 
service  at  or  under  age  35. 

(b)  The  total  amount  which  would  at  date  have  been  contrib- 
uted from  the  salary  of  such  employee,  with  interest,  had  the  standard 
plan  been  in  effect  from  such  date  of  entrance. 

(c)  The  total  amount  which  would  at  date  have  been  contributed 
by   such  employee  and  by  the  employer,  had  the  standard  plan  been 
in  effect  from  such  date  of  entrance. 

2.  The    difference    between   (a)   and   (b)    under    1    above    shall 
in  the  case  of  each  such  employee,  be  spread  over  his  remaining  period 
of   service   to  age   55   in   equal   monthly   deductions   from   salary,   to 
be  paid  into  the  pension   fund,  in  addition  to  those  required  under 
the  standard  plan,  but  the  total  of  all  such  deductions  shall  not 'ex- 
ceed 5  per  cent  of  salary.     If  any  part  of  such  difference  shall  not 
have  been  so  paid  into  the  pension  fund  when  the  employee  reaches 
age  55,  he  shall,  if  he  remain  thereafter  in  the  service,  contribute  5 
per  cent  of  salary  until  such  part  is  so  paid. 


294 

3.  The  difference  between  the  amount  which  is  in  the  pension 
fund  at  date  and  the  amount  which  would  have  been  in  that  func 
at  that  time  if  the  standard  plan  had  been  in  effect  during  the  perioc 
of  service  of  all  such  employees,  shall,  during  the  next  forty  years 
be  paid  into  the  fund  by  the  employer  in  equal  annual  installments 
whose  total  present  value  is  such  difference,  provided,  however,  tha 
each  annual  installment  shall  be  reduced  by  the  amount  paid  by  the 
employee,  as  specified  in  2,  above. 

4.  All  persons  entitled  to  and  receiving  pension  at  date  of  such 
substitution  shall  continue  to  receive  such  pension  as  they  are  so  en- 
titled to  receive,  save  that  in  the  case  of  any  person  receiving  such 
pension,  as  a  prior  employee,  who  at  that  date  is  not  disabled  anc 
is  under  age  55,  receipt  of  further  pension  shall  be  suspended  unti 
that  age.     Nor   shall  any  person   entitled   to   and   receiving  pension 
at  date  of  such  substitution  receive,  in  pension  thereafter,  more  than 
he  would  have  received  in  pension  had  the  standard  plan  been  in  effect 
during  the  period  of  service  of  such  pensioner  or  of  the  employee 
through  whom  he  claims. 

NOTE. — The  actuarial  figures  in  Part  I  show  that  under  present  regulations 
practically  all  the  existing  pension  funds  in  Illinois  are  insolvent,  with  perhaps  one 
minor  exception.  That  is,  in  order  to  meet  their  specified  obligations,  incurred  ir 
respect  to  public  service  rendered,  the  sjrstems  involving  the  larger  numbers  ol 
employees,  should  have  at  the  present  time  in  reserves  sums  ranging  from  five  to 
thirty  million  dollars  in  addition  to  what  they  actually  have.  The  above  provisions 
for  placing  these  funds  on  a  sound  basis  under  the  standard  plan,  broadly  speaking 
propose  to  this  end  two  things,  namely : 

1.  An  immediate  reduction  in  certain  cases  of  pension  obligations,   chiefly  by 
allowing  pension  only  to  those  who  have  attained  a  prescribed  age  and  by  lowering 
widow's  pensions   to   generally   prevailing  standards.     In   this   way   a   considerable 
fraction,  possibly  one-third  or  more,  of  the  deficit  in  those  funds  whose  deficits  are 
the  largest  will  be  wiped  out  when  the  standard  plan  is  adopted. 

2.  The  charging  of  the  balance  of  this  deficit  in  minor  part  to  present  employees 
and  in  major  part  to  the  employer,  such  contributions  for  deficit  being  in  the  case 
of  the  employee  spread  over  the  remainder  of  his  period  of  service,  and  in  the  case 
of  the  employer  over  a  future  period  of  40  years.     It  has  not  been  practicable  to 
figure  what  percentage  of  this  deficit  would,  under  these  proposals,  be  met  by  the 
employee  and  what  by  the  employer.     Much   the   larger   part,   however,   would   be 
met  by  the  employer.     At  the  same  time,  in  order  to  meet  this  deficit,  the  employee 
will  increase  his  contributions  from  the  probable  average  of  about  3  per  cent  under 
the  standard  plan  to  a  rate  not  above  5  per  cent,  which  the  Commission  regards  as 
a  reasonable  maximum   of  pension   contributions   by   the   employee.     Furthermore, 
while  the  employer  and  employee  both  share  in  the  responsibility  for  the  unsound- 
ness  of  existing  pension  funds,  it  seems  impracticable  to  insist  upon  the  employees' 
assuming  more  than  a  relatively  small  part  of  the  deficiency. 

The  period  of  40  years  during  which  it  is  proposed  that  the  employer  should 
dispose  of  the  balance  of  the  deficiency  is  below,  rather  than  above,  the  number  of 
years  adopted  for  this  purpose  in  some  pension  adjustment  schemes  which  might 
be  quoted  from  New  York  and  from  foreign  cities.  It  is  felt,  however,  that 
in  accordance  with  general  notions  of  policy  held  in  respect  to  similar  questions, 
such  obligations  ought  to  be  discharged,  at  least  approximately  within  the  genera- 
tion. 

In  proposing  that,  in  the  case  of  a  person  who  is  already  receiving  pension  and 
has  not  attained  age  55,  pension  shall  be  suspended  until  that  age  is  reached,  it  is 
recognized  that  such  pensioner  might  have  a  color  of  legal  claim  against  such  sus- 
pension. In  view,  however,  of  the  prevailing  insolvency  of  the  pension  funds  and 
of  the  fact  that  a  pensioner  would  in  any  case  be  limited  to  the  right  to  share  pro 
rata — that  is,  along  with  all  other  claimants — in  a  pension  fund  really  insolvent 
any  actual  legal  remedy  against  such  suspension  would  perhaps  be  of  very  doubtful 
availability.  Furthermore,  if  any  group  is  getting  something  for  nothing,  it  is 
those  who  became  pensioners  before  their  fellow  employees  awakened  to  the  actual 
cost  of  pensions  and  to  their  effect  upon  salaries.  It  would  seem  clearly  inequitable 
that  one  able-bodied  employee  should  be  required  to  remain  in  the  service  until 
age  55  and  make  increased  pension  contributions  under  the  standard  plan  before 
becoming  entitled  to  pension,  while  another  able-bodied  employee  should  be  al- 
lowed to  receive  pension  before  that  age  without  even  making  contributions  at 
all  for  certain  years  prior  to  that  date. 


295 

IAL  COMPUTATIONS   SHOWING  THE  RESULTS 
TO    BE    EXPECTED    UNDER    PROPOSED 
STANDARD  PENSION  PLAN. 

Under  a  reserve  pension  plan  such  as  the  Commission  recom- 
mends, there  will  be  on  hand  to  the  credit  of  each  employee  when  he  or 
she  reaches  the  minimum  age  for  retirement  an  amount  sufficient  to 
guarantee  the  pensions  promised  according  to  an  assumed  table  of 
mortality  and  rate  of  interest.  This  involves  the  accumulation  of 
funds  while  the  employee  is  in  active  service  to  pay  the  pensions  prom- 
ised upon  the  termination  of  such  service. 

The  Commission  recommends  that  there  be  accumulated  to  the 
credit  of  each  male  employee,  sufficient  funds  not  only  to  provide  a 
pension  for  himself  but  a  survivorship  pension  for  a  widow,  the  idea 
being  that  when  he  reaches  the  age  for  retirement,  if  he  has  a  wife,  the 
amount  accumulated  to  provide  a  survivorship  pension  for  a  widow 
will  be  set  aside  for  that  purpose  and  that  if  he  has  no  wife,  the  amount 
thus  accumulated  will  be  refunded  to  him.  The  Commission  recom- 
mends that  funds  for  widows'  pensions  be  accumulated  on  the  supposi- 
tion that  each  male  employee  has  a  wife  five  years  younger  than  he  and 
that  when  the  employee  reaches  the  age  for  retirement,  if  he  has  a  wife, 
the  amount  thus  accumulated  will  be  used  to  provide  a  widows'  pension 
based  on  the  actual  ages  of  the  employee  and  his  wife.  In  the  tables 
that  follow,  it  is  assumed  in  all  cases  that  the  wife  is  five  years  younger 
than  the  husband. 

The  standard  plan  recommended  involves  refunds  of  all  contribu- 
tions made  by  the  employee  with  4  per  cent  interest  per  annum  to  the 
date  when  the  minimum  age  for  retirement  is  reached,  less  the  amounts 
paid  in  pension  to  such  employee  and  any  dependents.  In  the  tables 
that  follow,  the  refunds  are  calculated  according  to  this  plan. 

All  calculations  are  made  on  the  basis  of  the  American  Experience 
Table  of  Mortality  with  4  per  cent  compound  interest.  For  the  infor- 
mation of  any  actuary  who  may  wish  to  check  these  figures  it  may  be 
stated  further  that  the  calculations  involving  more  than  one  life  were 
made  on  this  table  "Makehamized." 

TABLE  CXXIV. 

In  Table  CXXIV  below,  are  given  the  amounts  necessary  to  pro- 
vide a  pension  or  pensions  at  the  several  ages  of  retirement  stated 
therein,  on  the  following  bases : 

1.  If  the  employee  is  a  female,  or  a  male  who  is  unmarried  on  the 
date  when  the  minimum  age  for  retirement  is  reached,  a  pension  of 
$400  per  year. 

2.  If  the  employee  is  a  male  who  is  married  on  the  date  when  the 
minimum  age  for  retirement  is  reached,  a  pension  of  $400  per  year  for 
him  during  his  life  and  a  pension  of  two-thirds  this  amount  for  his 
widow. 

The  cost  of  the  refund  privilege  in  this  table  is  the  cost  of  insuring 
to  the  estate  of  the  employee,  return  of  one-quarter  of  the  amount 
necessary  to  provide  the  above  pension  or  pensions,  less  the  amounts 
actually  paid  in  pensions. 


296 


TABLE  CXXIV. 


Age  of 
employee 
on  date  of 
retirement. 

If  employee  is  a  female  or 
unmarried  male. 

If  employee  is  a  married  male. 

Amount  nec- 
essary to  pro- 
vide pension, 
if  no  refund. 

Cost  of 
refund 
privilege. 

Total  amount 
to  provide 
pension  with 
refund  privi- 
lege. 

Amount  nec- 
essary to  pro- 
vide pension, 
if  no  refund. 

Cost  of 
refund 
privi- 
lege. 

Total  amount 
necessary 
to  provide 
pension  with 
refund  privi- 
lege. 

50.... 
55 

$5,324  80 
4,704  00 
4,040  40 
3,361  60 

$28  40  • 
31  20 
32  40 
33  30 

$5,  353  20 
4,735  20 
4,072  80 
3,394  90 

$6,  250  40 
5,644  80 
4,977  20- 
4,271  20 

$1  60 
2  00 
2  40 
2  80 

$6,252  00 
5,64680 
4.979  60 
4,274  00 

60  
65. 

TABLE  CXXV. 

Under  the  standard  plan,  all  employees  upon  reaching  the  mini- 
mum age  for  retirement  shall  have  contributed  the  same  amounts 
reckoning  interest,  towards  pensions  of  $400  per  year  for  themselves, 
and  in  the  cases  of  male  employees,  the  same  amounts,  reckoning  inter- 
est for  widows'  pensions.  If  the  accumulations  are  to  be  made  by 
equal  amounts  each  year  throughout  the  period  of  service  to  the  date 
when  the  minimum  age  for  retirement  is  reached,  the  annual  payments 
will  necessarily  vary  according  to  the  ages  of  entrance  into  service. 
Table  CXXV  shows  the  annual  cost  to  provide  for  one-quarter  of  the 
above  pensions,  with  refunds. 

TABLE   CXXV. 


Age  of  em- 
ployee on 
entrance  into 
service. 

Annual  cost  to  employee  when  no 
widows'  pensions  are  to  be 
provided  for. 

Annual  cost  to  employee  when 
widows'  pensions  are  to  be 
provided  for. 

Age  at  retirement. 

Age  at  retirement. 

21  

50 

55 

60 

$10  84 
13  31 
17  48 
23  54 
32  92 

65 

$  7  12 
8  64 
11  15 
14  65 
19  73 
27  59 

50 

55 

$19  02 
23  69 
31  91 
44  62 

60 

$12  97 
15  92 
20  90 
28  15 
39  36 

65 

$  8  72 
10  59 
13  67 
17  95 
24  17 
33  80 

$24  13 
30  70 
42  93 

$16  25 
20  24 
27  25 
38  12 

$27  77 
35  31 
49  39 

25      

30 

35 

40  
45 

TABLE  CXXVI. 

Table  CXXVI  shows  the  annual  cost  to  the  employer  to  provide 
for  the  remaining  three-quarters  of  the  pension  whose  cost  to  the  em- 
ployee is  stated  in  Table  CXXV.  The  figures  in  this  table  are  ap- 
proximately three  times  as  large  as  the  corresponding  ones  in  Table 
CXXV,  but  are  not  exactly  so  because  of  the  absence  of  refunds  to 
the  employer  if  the  employee  dies  before  the  amount  accumulated  fro'm 
his  contributions  is  returned  in  pension. 


297 


TABLE  CXXVI. 


Age  of  ein- 

entrance  into 

vice. 

Annual  cost  to  employer  when  no 
widows'  pensions  .are  to  be 
provided  for. 

Annual  cost  to  employer  when 
widows'  pensions  are  to  be 
provided  for. 

Age  of  retirement. 

Agre  of  retirement. 

•2\        

50 

55 

60 

65 

$20  54 
24  95 

3-2  i«.) 

42  27 
56  92 
79  61 

50 

$  83  22 
105  83 
148  01 

55 

$  56  98 
70  97 
95  58 
133  67 

60 

Go 

$  70  89 

ix)  if, 

\'M   10 

$  47  48 
59  14 

111  39 

$31  51 

38  68 

:,o  so 

«:•  GS 

$  38  82 
47  65 
62  58 

84  27 
117  86 

$  26  09 
31  69 
40  89 
53  73 
72  32 
101  14 

30  

4ii                  , 

•If,                         

TABLE  CXXVII. 

Table  CXXVII  contains  the  totals  of  Table  CXXV  and  CXXVI 
and  thus  exhibits  the  total  cost  per  year  for  a  pension  of  $400  per  year 
to  the  employee  and  in  the  case  of  a  male  employee  of  two-thirds  this 
amount  to  his  widow,  with  refund  of  one-quarter  the  amount  thus  ac- 
cumulated, as  already  explained. 

TABLE  CXXVII. 


Agre  of  em- 
ployee on 
entrance  into 
service. 

Total  annual  cost  when  no  widows' 
pensions  are  to  be  provided  for. 

Total  annual  cost  when  widows' 
pensions  are  to  oe  provided  for. 

Agre  of  retirement. 

Age  of  retirement. 

21  ... 

50 

55 

60 

65 

50 

55 

60 

65  - 

$  95  02 
120  86 
169  03 

$  63  73 
79  38 
106  90 
149  51 

$  42  32 
51  99 

r,s  :Ji 
91  96 
128  60 

$  27  66 
33  59 
43  34 
56  92 
76  65 
107  20 

$110  99 
141  14 
197  40 

$  76  00 
94  66 
127  AQ 
178  29 

$  51  79 
63  57 
83  48 
112  42 
157  22 

$  34  81 
42  28 
54  56 
71  68 
96  49 
134  94 

30  

4(1  

\:> 

TABLE    CXXVIII. 

Under  the  standard  plan  a  deduction  is  to  be  made  from  the  salary 
of  each  male  employee  in  receipt  of  a  salary  of  $1,000  per  year,  or  over, 
of  a  fixed  percentage  of  the  salary,  this  percentage  to  depend  upon  the 
minimum  age  for  retirement  adopted  by  the  particular  service  in  which 
the  employee  is  engaged.  The  amounts  thus  deducted  less  the  amounts 
required  to  provide  for  these  pensions,  the  cost  of  which  is  illustrated 
in  the  four  tables  above,  together  with  contributions  of  equal 
amounts  from  the  employees  are  to  be  improved  at  4  per  cent  interest 
per  annum,  compounded  annually  to  the  date  when  the  minimum  age 
for  retirement  is  reached  and  used  to  provide  an  extra  or  sur-pension 
for  the  employee,  also  a  survivorship  widow's  pension  for  his  wife,  if 
he  has  a  wife  on  that  date. 

Table  CXXVIII  shows  the  amount  of  pension  including  both  mini- 
mum and  sur-pensions  which  would  be  available  to  a  male  employee  or 
his  widow  under  the  proposed  plan  if  he  entered  the  service  at  the  age 
of  25  and  receive  in  salary  the  amounts  stated  in  one  of.  the  salary  sched- 
ules given  below,  the  minimum  ages  for  retirement  being  as  stated  in 
the  table.  The  percentage  of  salary  deducted 'is  5  per  cent  when  the 


298 


minimum  age  for  retirement  is  50 ;  4  per  cent  when  55,  and  3  per  cent 

when  60  or  65. 

Schedule      I.     $900  first  year,  $1,000  second  year,  $1,350  thereafter. 

Schedule  II.  $675  first  year,  increasing  by  $50  per  year  until  it 
reaches  $1,125,  then  $1,235  for  next  succeeding  year 
and  $1,355  thereafter. 

Schedule  III.  $840  first  year,  $960  second  year,  $1,080  third  and 
fourth  years,  and  $1,200  thereafter. 

Schedule  IV.  $1,000  first  year,  increasing  by  $100  per  year  until  it 
reaches  $1,800,  then  remaining  at  this  figure  there- 
after. 

Schedule  V.  $1,000  at  outset,  increasing  by  $300  after  each  period 
of  service  of  three  years  until  it  reaches  $2,500,  re- 
maining at  this  figure  thereafter. 

TABLE  CXXVIII. 


Age  of  retirement. 

»60 

255 

360 

365 

Salary  as  in 

Em- 
ployee's 
pension. 

Widow's 
pension. 

Em- 
ployee's 
pension. 

Widow's 
pension. 

Em- 
ployee's 
pension. 

Widow's 
pension. 

Em- 
ployee's 
pension. 

Widow's 
pension. 

1 

Schedule  I 

$566 

$377 

$635 

$423 

$678 

$452 

$    911 

$607 

Schedule  II  

501 

334 

555 

370 

597 

398 

776 

517 

Schedule  III... 

519 

346 

578 

385 

623 

415 

828 

552 

Schedule  IV.... 

652 

435 

746 

497 

815 

543 

1,128 

752 

Schedule  V  

713 

475 

834 

556 

925 

617 

1,307 

871 

1  5$  deduction  from  salary. 

2  4$  deduction  from  salary. 

3  3$  deduction  from  salary. 


TABLE  CXXIX. 


The  standard  plan  provides  for  deduction  from  salaries  of  female 
employees  equal  to  the  deduction  from  salaries  of  male  employees,  less 
the  amounts  necessary  to  provide  for  widows'  pensions.  This  gives 
the  following  percentages  to  be  deducted  from  salaries  of  female  em- 
ployees in  the  cases  where  the  salary  schedules  are  as  in  Table 
CXXVIII. 

TABLE  CXXIX. 


Salary  as  in 

50 

55 

60 

65 

Schedule     I.                            

Per  cent. 
4.33 

Per  cent, 
3,39 

Per  cent. 
2.44 

Per  cent. 
2.50 

Schedule    II                                               

4.33 

3.39 

2.48 

2.41 

Schedule  III 

4.31 

3  39 

2.49 

2.46 

Schedule  IV                    

4.32 

3.36 

2.46 

'    2.40 

Schedule    V                                         

4.28 

3.36 

2.46 

2.40 

Age  of  retirement. 


299 


CHAPTER    III. 


PROPOSALS    FOR    AMENDATORY    PENSION    LEGISLA- 
TION BY  THE  50th  GENERAL  ASSEMBLY  OF  ILLINOIS. 

The  Commission  believes  that,  without  prejudice  to  the  more  thor- 
ough treatment  of  all  public  pension  funds  in  this  State  which  is  rec- 
ommended in  Chapter  II,  and  with  a  view  to  improving  the  conditions 
in  the  meantime  of  some  of  the  larger  pension  funds  which  urgently 
need  attention,  certain  changes  of  a  temporary  character  should  be 
made  toward  such  improvement.  The  Commission  recommends, 
therefore,  that  the  laws  affecting  the  following  four  public  pension 
funds ;  namely  the  Chicago  Teachers'  Pension  Fund,  the  Pension  Fund 
of  Municipal  Employees  of  Chicago,  the  Chicago  Policemen's  Pension 
Fund  and  the  Chicago  Firemen's  Pension  Fund, — be  amended  by  the 
Fiftieth  General  Assembly  so  as  to  include  the  provisions  specified 
below.1  Also,  that  the  Workmen's  Compensation  Act  be  amended  as 
specified  below. 

PROPOSALS  AFFECTING  EACH  OF  THE  FOUR  FUNDS. 

1.  The  minimum  age  at  which  an  employee  may  withdraw  from 
service  and  enter  on  pension,  except  in  cases  of  disability,  shall  be  as 
follows:     Policemen,  firemen,  and  teachers,  50  years;  municipal  em- 
ployees, 55  years. 

2.  Each  disability  pensioner  shall  be  examined  at  least  once  a  year 
by  one  or  more  physicians  selected  by  the  managing  board  of  trustees ; 
such  physician,  or  physicians,  shall  advise  the  pension  board  whether 
disability  of  the  employee  continues ;  and  if  disability  no  longer  con- 
tinues, the  employee  shall  return  to  the  service  at  the  former  status  of 
such  employee. 

3.  Illegal  voting  at  any  election  of  pension  trustees  shall  be  pun- 
ishable by  a  fine  of  $100. 

4.  The  State  Superintendent  of  Insurance  shall  prescribe  a  system 
of  records  and  accounting  to  be  observed  in  the  management  of  each 
pension  fund  in  the  State,  with  a  view  to  making  available  the  informa- 
tion necessary  for  the  proper  administration  and  public  regulation  of 
these  funds,  and  in  particular  shall  prescribe  a  form  for  reports  to  be 
made  to  him  at  least  once  a  year  by  the  trustees  of  each  such  fund  ;  and 
such  trustees  shall  make  such  reports.     The  State  Superintendent  of 
Insurance  shall  report  each  year  to  the  Governor  this  information,  or 
such  summary  thereof  as  he  may  deem  wise. 


1  In  its  recommendations  for  pension  contributions  from  the  city,  the  Com- 
mission has  not  proposed  any  definite  period  during  which  such  contributions 
should  continue.  It  is  our  opinion  that  they  should  continue  until  the  adoption 
of  a  revised  pension  plan  as  contemplated  in  this  report. 

—20  P  L 


300 

5.  An  emergency  clause  shall  be  affixed  to  each  bill,  so  that  the 
amendments  will  take  effect  upon  their  passage. 

6.  The  Illinois  Workmen's  Compensation  Act  shall  be  amended  so 
that  when  a  State  or  municipal  employee,  who  is  included  under  a 
pension  fund  to  which  his  or  her  employer  contributes,  is  injured  or 
dies  in  the  performance  of  duty,  the  pension  rights  of  such  person  or 
his  or  her  dependents  shall  be  reduced  by  any  amount  received  by  such 
person  or  dependents  in  the  form  of  compensation  under  the  provisions 
of  the  Workmen's  Compensation  Act. 

PROPOSALS  AFFECTING  CHICAGO  TEACHERS'  PENSION  FUND. 

1.  Teachers  now  in  service  or  hereafter  appointed  shall,  during  the 
first  four  years  they  are  in  service,  contribute  $15  per  year  to  the  pen- 
sion fund ;  during  the  second  four  years,  $25 ;  during  the  third  four 
years,  $30 ;  and  thereafter  as  long  as  they  are  in  the  service,  $40  per 
year — the  board  of  education  contributing  twice  the  amounts  thus  con- 
tributed by  the  teachers. 

2.  A  teacher  who  has  served  25  years  and  is  at  least  50  years  old 
may,  on  retirement,  receive  pension.     A  teacher  retiring  after  25  years 
of  service,  and  before  age  50,  may  continue  payments  as  though  in 
service,  and  receive  pension  at  the  age  of  50. 

3.  The  period  of  service  required,  in  order -that  a  teacher  may  be 
eligible  for  the  disability  pension  provided  for  in  the  present  law,  shall 
be  12  years. 

4.  The  amount  of  disability  pension  shall  be  in  no  case  less  than 
$200  per  year. 

5.  The  day  for  election  of  pension  trustees  shall  be  Friday  instead 
of  Wednesday  as  under  the  present  act. 

6.  The  second  (or  final)  election  shall  be  eliminated  in  the  case 
of  any  candidate  for  pension  trustee  who  receives  a  majority  of  all  the 
votes  cast  at  the  primary  election  for  the  office  for  which  such  person 
is  a  candidate. 

7.  The  investment  of  surplus  funds  shall  be  mandatory  on  the 
board  of  trustees,  and  all  interest  earned  by  the  pension  fund  shall  re- 
vert to  the  fund. 

8.  The  board  of  trustees  shall  have  power  to  suspend  payment  of 
disability  pensions  if  disability  ceases. 

9.  The  pension  fund  accounts  shall  be  audited  at  least  once  a  year. 

10.  Teachers  coming  into  the  Chicago  public  schools  with  outside 
time  to  their  credit  shall  be  required  to  make  back  payments  for  such 
outside  time,  with  interest  at  4  per  cent  per  annum,  compounded  an- 
nually. 

11.  Contributors  no  longer  in  service  shall  be  entitled  to  hold  office 
the  same  as  contributors  in  service. 

12.  Disability  must  be  shown  to  have  been  the  cause  of  the  teach- 
er's termination  of  service  in  order  to  obtain  a  disability  pension. 

NOTE. — Omit  emergency  clause  proposed  above. 

PROPOSALS    AFFECTING    PENSION    FUND    OF    MUNICIPAL    EMPLOYEES    OF 

CHICAGO. 

1.  Employees  now  in  the  service,  or  hereafter  appointed,  shall  con- 
tribute $30  per  year  toward  the  pension  fund  as  long  as  they  are  in  the 


301 

service,  and  the  city  shall  contribute  twice  the  amounts  thus  contributed 
by  the  employees. 

2.  Section  7  of  the  present  act  shall  be  amended  to  allow  4  years 
instead  of  3  in  which  to  make  up  the  difference  between  the  amount 
paid  in  and  that  required  to  be  paid  before  a  full  pension  may  be 
received. 

3.  Section  8  of  the  present  act  shall  be  amended  to  allow  an  em- 
ployee 12  months  instead  of  30  days,  as  in  the  present  act,  in  which  to 
make  up  the  difference  between  the  amount  paid  in  and  that  required 
to  be  paid  in  where  the  employee  leaves  the  service  after  20  years  of 
service  but  before  the  age  of  55  and  expects  to  receive  pension  at  the 
age  of  55,  with  the  provision  that  5  per  cent  interest  will  be  charged 
from  date  of  retirement  from  service  to  date  when  such  entire  amount 
is  paid. 

PROPOSALS    AFFECTING    CHICAGO    POLICEMEN'S    PENSION    FUND. 

1.  Section  9  of  the  Police  Pension  Act  shall  be  amended  by  'sub- 
stituting "the  superintendent  of  insurance"  for  "one  or  more  actuaries  " 

2.  Employees  shall  contribute  to  the  pension  fund  2^  per  cent 
of  their  salaries,  and  the  city  shall  contribute  the  proceeds  of  a  tax 
levy  of  nine-tenths  of  a  mill  on  each  dollar  of  taxable  property  in  the 
city. 

o.  Upon  the  death  of  an  employee,  not  due  to  the  performance  of 
duty,  before  the  age  of  50,  the  widow  shall  receive  monthly  a  pension 
of  $2  for  each  year  of  service  performed  by  her  deceased  husband,  but 
not  to  exceed  a  total  of  $40  per  month. 

The  widow  of  an  employee  killed  in  the  performance  of  duty  or  of 
one,  who  in  the  performance  of  duty,  received  injuries  f^ori  which  he 
afterwards  died,  or  of  an  employee  who  has  served  at  least  20  years  or 
was  retired  on  pension  after  age  50,  shall  receive  a  pension  of  $40  per 
month. 

-1.  If  an  employee  dies  leaving  one  or  more  children  each  child 
shall  receive  a  pension  of  $10  per  month  while  the  mother  ;s  living  and 
$15  per  month  when  neither  parent  is  living,-  up  to  the  age  of  14,  and 
shall  thereafter  receive  like  amounts  up  to  the  age  of  18  so  long  as 
attending  school,  and  when  not  attending  school,  then  $5  less  per 
month. 

5.  An  employee  retiring  from  service  after  20  years  of  service 
and  before  50  years  of  age  may  continue  until  that  age  to  contribute 
to  the  pension  fund  twice  the  amount  which  such  employee  was  con- 
tributing at  the  time  of  retirement,  and  receive  pension  at  the  age  of 
50  —  the  widow  and  children,  if  there  be  such,  to  have  the  same  pension 
rights  as  if  the  employee  had  remained  in  service  up  to  that  age. 

6.  The  wives  and  children  of  insane  policemen  shall  be  granted 
the  same  pension  privileges  as  widows  and  children  of  policemen  who 
die  in  service  not  from  injuries  received  in  the  performance  of  duty. 

PROPOSALS    AFFECTING    CHICAGO    FIREMEN'S    PENSION    FUND. 


1.  Employees  shall  contribute  to  the  pension  fund  2J^  per  cent  of 
their  salaries,  and  the  city  shall  contribute  the  proceeds  of  a  tax  levy 
of  five-tenths  of  a  mill  on  each  dollar  of  taxable  property  in  the  city. 


302 


2.  If  an  employee  dies  hereafter  leaving  a  widow,  she  shall  receive 
a  pension  of  $40  per  month. 

3.  If  an  employee  dies  leaving  one  or  more  children,  each  child 
shall  receive  a  pension  of  $10  per  month  while  the  mother  is  living  and 
$15  per  month  when  neither  parent  is  living,  up  to  the  age  of  14,  and 
shall  thereafter  receive  like  amounts  up  to  the  age  of  18  so  long  as 
attending  school,  and   when  not  attending  school,  then   $5   less  p^r 
month. 

4.  An  employee  retiring  from  service  after  20  years  of  service  and 
before  age  50  may  continue  until  that  age  to  contribute  to  the  pension 
fund  twice  the  amount  which  such  employee  was  contributing  at  the 
time  of  retirement,  and  receive  pension  at  the  age  of  50 — the  widow 
and  children,  if  there  be  such,  to  have  the  same  pension  rights  as  if  the 
employee  had  remained  in  service  up  to  that  age. 

TABLE    SHOWING    APPROXIMATE    RESULTS    FOR    TYPICAL    EMPLOYEES 
OF    ABOVE    PROVISIONS,    IF    ADOPTED. 


Funds. 

¥1 

§3* 

0  MP  05 

*]«! 

££rto 

TO    ^    fH  •—  t 

v£>  S  a 
> 

Percentag-e  of 
salary. 

a^ 

O-Q 
o 

flj"0 

2* 

3^ 

|l! 

Approximate 
ratio  of  city's 
to  employee's 
contribution. 

Average  yearly 
pension. 

Widow's  yearly 
pension. 

Minimum  a  g-e  II 
for  retirement.  1  1 

Policemen.. 

$33  00* 

21 

9 

*6     to  1 

*$690 

t$480 

50 

Firemen  

34  28* 

$ 

*6.6  to  1 

*700 

t480 

50 

Municipal  employees  

30  00 

24 

100  * 

2      to  1 

600 

^ 

Teachers 

15  00  first  4  years. 

2i 

T* 

2      to  1 

t400 

*>0 

25  00  second  4  years. 

30  00  third  4  years. 

40  00  thereafter 

*  Approximately. 

t  Pension  since  1913. 

j  Proposed  pension. 


303 


CHAPTER    IV. 


RECOMMENDATION    FOR    FURTHER    STUDY    OF    THE 
PENSION    PROBLEM    IN    ILLINOIS. 

As  stated  above,  the  provisions  recommended  in  Chapter  1 .1 1  for 
adoption  by  the  present  Legislature  will  accomplish  only  in  minor  part 
the  changes  which  are  desirable  in  the  pension  laws  of  Illinois.  In  re- 
gard to  many  fundamental  questions  involved  in  this  complex  subject, 
the  Commission,  as  explained  in  Chapter  I,  has  been  unable,  in  the 
limited  time  available,  to  reach  conclusions.  Difficulties  arise  from  the 
fact  that  many  independent  pension  funds  exist  which  include  groups 
of  employees  too  few  in  number  to  make  reliable  actuarial  computa- 
tions possible.  Difficulties  are  met  in  endeavoring  to  adjust  the 
amounts  of  pensions  to  employees  whose  services  differ  widely  in  char- 
acter, and  in  endeavoring  to  fix  the  proper  ratio  of  contribution  as 
between  employer  and  employee.  Difficulties  beset  the  effort  to  build 
a  pension  system  financially  sound — possessing  at  all  times  resources 
to  meet  its  then  obligations.  Still  greater  difficulties  are  encountered 
in  the  attempt  to  place  on  a  sound  basis  pension  systems  already  in 
existence  which  have  been  operating  on  an  unsound  basis  until  they  are 
burdened  with  an  almost  crushing  load  of  liabilities  for  which  no  re- 
sources exist.  Problems  of  administration  likewise  await  solution. 

All  these  questions  are  rendered  still  more  formidable  by  the 
diversity  of  pension  legislation  and  practice  in  this  State,  and  by  the 
conspicuous  lack  of  any  consensus  of  opinion  between  different  groups 
of  employees  as  to  sound  pension  policies. 

The  following  are  some  of  the  important  questions  to  which  fur- 
ther study  should  be  devoted,  with  a  view  to  incorporating  in  appropri- 
ate legislation  the  results  of  the  study : 

1.  What  should  be  the  minimum  age  at  which  an  employee  should 
be  eligible  to  receive  pension  ? 

2.  What  number  of  years  in  service  should  be  required  before  an 
ployee  is  entitled  to  receive  pension  ? 

3.  What  provision  should  be  made  for  an  employee  entering  serv- 
e  too  late  in  life  to  allow  him  to  complete  the  period  of  years  speci- 
fied in  2  before  reaching  the  minimum  age  specified  in  1. 

4.  To  what  extent  should  the  tentative  proposals  on  pages  293 
and  294  of  Chapter  II  be  adopted  in  bringing  existing  pension  funds 
under  the  proposed  standard  plan? 

5.  What  plan  should  be  adopted  to  insure  that  no  separate  pension 
fund  should  include  too  small  a  number  of  employees  to  make  reliable 
actuarial  computations  concerning  their  pension  experience  possible  ? 

6.  What  method,  if  any,  should  be  adopted   for  combining  for 
pension  purposes  employees  from  different  services  in  the  same  polit- 


;: 


304 

ical  area,  or  employees  from  the  same,  or  from  different,  services  in 
separate  political  areas? 

7.  Are  the  ratios  of  contribution  as  between  employer  and  em- 
ployee which  are  specified  in  section  6  of  Chapter  II  the  best  for  prac- 
tical use?  If  not,  what  ratios  should  be  adopted? 

8.  Should  the  practice  of  providing  that  the  contributions  of  the 
employer  shall  be  made  from  special  sources  of  public  revenue  be 
abandoned  ? 

9.  Is  it  desirable  that  the  same,  or  approximately  the  same,  plan 
be  applied  in  the  case  of  all  pension  funds,  or  in  the  case  of  certain 
groups  of  such  funds  ? 

10.  Should  the  majority  of  each  board  of  pension  trustees  be  ap- 
pointed by  the  employer,  or  should  they  be  elected  by  the  employees? 

11.  Should  any  of  such  trustees  be  members  of  more  than  one 
board  of  pension  trustees  ? 


305 


INDEX. 


PAGE. 

Active  service 

Actual  experience 

Firemen,    Table    XVII 104 

-Municipal       employees.       Table 

LIV    148 

Policemen,  Table  1 83 

Teachers,        Chicago,        female, 

Table  XXXV 124 

Teachers,   Chicago,   male,   Table 

XXXVI .  .    125 

Teachers,   State,  Table  LXVI..    165 
Cost  of  pensions  for 

(see  cost  of  pensions) 
Kates 

(see  rates) 

Summaries   of  number  in   and  contri- 
butions   of 

Firemen    13 

Municipal  employees    17 

Policemen    11 

Teachers,   Chicago 15 

Teachers,   State    17 

Tables   and   salary   scales 

Firemen,   Table  XXIV 108 

.Municipal       employees,       Table 

LVI    149 

Policemen,    Table   VII 87 

Teachers.         Chicago,         female 

Table  XXIX 128 

Teachers,   Chicago,  male,  Table 

XL 129 

Actuarial 

Balance  sheet  (see  balance  sheets) 
Computations    under    proposed    stand- . 

ard   pensions   plan 295 

Table  used  for 296 

Report 

General    introduction    72 

Firemen    104 

Municipal   employees    147 

Policemen    .  ... 81 

Teachers,  Chicago    124 

Teachers,   State    161 

vantages   of   "reserve"   plan   over 

"cash  disbursement"   plan 
(see      methods       of       providing 

funds) 
Age 

Average  of  entrance 

Firemen    113 

Municipal   employees    156 

Policemen    93 

Teachers,     Chicago 132 

of  employees 

(see     statistical      tables     under 

name  of  fund) 
of  pensioners 

(see     statistical      tables     under 

Pname  of  fund) 
of  retirement 
Assumptions    in    regard    to    age 
for    municipal    employees....    150 
Assumptions    in    regard    to    age 
for  teachers,   State 162,163 
In  foreign  countries,  summary.      35 
In  Illinois  and  other  states.    54-  57 
In    proposed    standard    pension 
plan     296-298 


PAGE 

Age — Concluded. 

Wife's    average    age    for    various 
ages  of  husband 

Firemen,   Table   XXI 107 

Policemen,    Table   V 86 

Amendatory  pension  legislation,  pro- 
posed 

Affecting 

All  funds   299 

Firemen    301 

Municipal  employees 300 

Policemen    301 

Teachers,   Chicago 300 

Table  of  results  under 302 

Annual  cost  of  pensions 
(see  cost  of  pensions) 

Appendix  "A" 205 

Text  reference   to 38 

Appendix    "B"    241 

Text  reference  to 10 

Assets  and  liabilities 

(see  balance  sheets) 
Assumptions 

General 81 

Municipal   employees    72,  147 

Analysis  under v.   157 

Teachers,   Chicago 

Hypotheses  I   and  II 133 

Teachers,  State 

General 73 

Hypotheses    I    and    II 162 

In    regard    to    groups    becoming 

eligible •> 163 

Aurora 

Firemen,   Table   CXIV 197 

Policemen,  Table  CXVIII 199 

Average 

Age  of  entrance   (see  age) 
Balance    Sheets 
General 

Not   concerned   with   future   en- 
trants        80 

Rate    of    interest   assumed    in..      80 
Sources  of  revenue,  how  treated 

in     80 

Firemen,    Table    XXXIV,    p.    123, 

Text     115 

Municipal        employees,        Tables' 

LXII-LXV,    p.    159,    Text 156 

Policemen,     Table     XVI,     p.     103, 

Text     94 

Teachers,   Chicago,  Table  LIII,   p. 

146,    Text 134 

Basic  Data 

(see    data) 
Beneficiaries 

Under  proposed   standard  pension 

plan 275  and  287 

Benefits 

All  funds,  see  Appendix  "B" 241 

Compared   with    contributions    for 

Chicago  , funds    50 

Municipal    Employees     156 


306 


INDEX — Continued. 


Benefits — Concluded. 

PAGE 

Present  value  of  to  Municipal  em- 
ployees   (see  contributions) 

Summary   of   for 

Firemen     104 

Municipal    employees    147 

Policemen    81 

Teachers,    Chicago    124 

Teachers,   State    161 

Under  proposed   standard  pension 
plan   to 

Public  service 273 

Employees       and       dependents, 
Tables   CXXIV-CXXIX    ..296-298 

Blooming-ton 

Firemen,    Table    CXVIII 199 

Policemen,  Table  CXVIII 199 

"Cash  disbursement"  plan 

(see  methods  of  providing  funds) 


Champaign 
Policemen, 


Table    CXVII 198 


Children 

of  active  firemen,  average  num- 
ber, Table  XXIX 112 

Pensioners,   (see  pensioners) 

City's   contributions 
(see  contributions) 

Classes 

Division  of  pensioners  (all)  into 
(see  pensioners,  classes) 

Commission,  Illinois  Pension  Laws 

Act  creating   1 

Duties    of 5 

Members  of 2 

Recommendations  of,  (see  stand- 
ard pension  plan) 295 

Comparison 

of  pension  laws  in  Illinois  with 
those  in  other  states  and 
countries  (see  laws,  pension ; 
Foreign  pension  systems) 

of  rates  (see  rates) 

Condition     of    pension    systems     in 

Illinois  (see  balance  sheets)  ...   272 

Conditions  for  retirement 

(see  age  of  retirement ;  service  re- 
quirement) 

Contribution  scale 

Average  for  teachers,  Chicago 

Female,    Table   XLI 130 

Male,    Table    XLII 130 

Contributions  of  employees 

Expressed  as  percentage  of  salary 
of  average  entrant  (see  cost  of 
pensions) 

Municipal 

present       values       of,       Tables 

LXVIII    and   LXI 151 

ratio    of   benefits    purchased   by 

to  total  benefits,  Table  LVII.    150 
Teachers,    Chicago: 

Future  entrants,  Table  XLIX.137 

Combined,  Table  L 139 

Teachers,   State    164 

Under  proposed   standard  pension 

plan   (also  of  employer) 289 

Values  of  benefits  compared  with, 
for  Chicago  funds 50 


PAGE 

Conversion  of  existing  pension 
funds  to  accord  with  pro- 
posed standard  pension  plan  293 

Cost  of  pensions 
Annual  for  firemen 

Active    service    and    their    de- 
pendents,  Table   XXXI 118 

Future  entrants  and  their  de- 
pendents,   Table   XXXII 120 

Present    pensioners    and    their 

dependents,   Table  XXX 116 

Above    three    combined,    Table 

XXXIII    121 

Annual  for  policemen 

Active    service    and    their    de- 
pendents, Table  XIII 98 

Future   entrants    and    their   de- 
pendents, Table  XIV 100 

Present    pensioners    and   their 

dependents,  Table  XII 96 

Above    three    combined    (text, 

92)   Table  XV 101 

Annual    for    teachers,     Chicago, 

(female) 

Active  service,  Table  LXVIII  136 
Future  entrants,  Table  XLIX  137 
Present  pensioners,  Table 

XLVII   135 

Above    three    combined,    Table 

L 139 

Annual     for     teachers,      Chicago 

(male) 

Active  service,  future  entrants 
and       present        pensioners, 

Table  LI 142 

Annual  for  teachers,  Chicago, 
(male  and  female)  Table 

LII   144 

For      teachers,       State,       Tables 

LXVIII-LXXI   166 

In  foreign  countries 

Methods     of     meeting      (sum- 
mary)          34 

In  Great  Britain 

As  a  percentage  of  salary 24 

Under  proposed  standard  pen- 
sion plan,  Tables  CXXIV- 
CXXVII  296-297 

Costs,  comparative  for 
Firemen 

Different  classes  of  widows.  . .    114 
Disability     and     service     pen- 
sioners      ' 114 

Men  and  their  widows 114 

Policemen 

Different  classes   of  widows.  .      94 
Disability     and     service     pen- 
sioners          93 

Men  and  their  widows 93 

Costs,  future 

Plan     followed     in     determining 

(general)     73 

Teachers,  State,  Tables  LXVIII- 
LXXI  166 

Costs,  present  and  future 

Plan  followed  in  collection  of  in- 
formation as  to 6—8 

Details  of  summarized 

Firemen    

Municipal   employees 

Policemen    

Teachers,  Chicago 15 

Teachers,  State 17 

Data,  basic 

Difficulties  encountered  in  col- 
lecting    79 

General  statement  as  to  collec- 
tion of  .  74-79 


30? 


INDEX— Continued. 


PAGE 

Data   basic — Concluded. 

Required    for    determination    of 
future  costs 

General    72 

Firemen  and  policemen 74 

Teachers,    State 161 

(also  see  rates) 

Teachers,  Chicago,  male  and  fe- 
male kept  separate 124 

Decatur 

Firemen,  Table  CXIII 197 

Policemen,  Table  CXVIII 199 

Deficiency  in  fund 

Municipal  employees 157 

Teachers,    Chicago 134 

(see  balance  sheets) 

Definitions  of  terms 286 

Dependents,   other   than  widow   or 

natural  children 

Firemen   and   policemen    in    Illi- 
nois and  other  states 70 

For  benefits   to,  see  benefits 
Direct  tax 

As    source    of   revenue   in    other 

states   51 

Disability  pensioners 

(see  pensioners) 
East   St.    Louis 

Firemen,  Table  CXXVII 199 

Elgin 

Firemen,   Table   CXVIII 199 

Employees,   (see  active  service) 
Benefits  to   (see  benefits) 
Length    of   service    required   for 
pension     (see    service    require- 
ments,    also     statistics     under 
name  of  fund; 
Number  of   (see  statistics  under 

name  of  fund) 

Payments,    limitations   of   in   Illi- 
nois         52 

(see  contributions) 
Public   service   in   Illinois 
Extent   of   present   and   possible 

future  legislation  for 18 

Scope  and  ugency  of  pensions  for  271 

Statistics   of    200 

Equities   (see  refunds) 
Evanston 

Firemen,   Table   CXV 198 

Policemen,  Table  CXVI 198 

Experience 
Actual  of 

Active  service  (see  active  service) 
Disability  pensioners 

Firemen,  Table  XIX 105 

Policemen,   Table   III 84 

Service  pensioners 

Firemen,  Table  XVIII 105 

Policemen,  Table  II 84 

ctors     considered     in     proposed 
standard  pension  plan 

Enumeration   of 299 

Financial   statements,    all   funds 

(see  statistics  under  name  of  fund) 
Firemen 

General  pensions   for  in   Illinois     37 
Firemen's  Benevolent  Associations 

in  Illinois    36 

Firemen's  fund  of  Chicago 

Actuarial  report   on 104 

Statistical,       Tables       LXXVII- 

LXXXII   173-176 

Summary   of    details    of   present 

and  probable  cost 13 

Foreign  pension  systems 

General   summary  and  compari- 
sons     34 


PAGE 

Foreign   pension   systems — Conld. 

Origin  and  growth  of 20 

Austro-Hungary   (civil  service).  31 

France 32 

Germany   (civil  service) 29 

Compared  with  England 30 

Old  age  or  industrial 31 

Great   Britain    (civil   service)  ....  21 

Compared   with   Illinois 25 

Teachers 26 

Great  Britain  and  Ireland 

Compared  with   Illinois 29 

Old   age    27 

New  Zealand    (civil  service) 33 

'Old  age    34 

Funds 

Investment  of  by  pension  boards 

in  Illinois   (summary) 71 

(see  Appendix  "B") 
Pension 

Existing     in     Illinois      (enume- 
rated)          10 

Management    of 

in   Illinois    4 48 

in  other  states JP 49 

under  proposed  standard  pen- 
sion plan    292 

Small  in  Illinois 

no  actuarial  investigation 73 

statistics    relating    to,    are    in 

chapter  VI    168 

and    indexed    under    name   of 
city 

Solvency   of,   provisions   for 52 

(see  balance  sheets) 

Future  cost  of  pensions 
(see  cost  of  pensions) 

General     description    of    data     and 

methods   used 
(see  data,  basic) 
Historical  sketch  of  pension  laws 

in  Illinois,  Chapter  III 36 

Detail  of  same  in  Appendix  "A".    205 
House  of  Correction  employees,  Chi- 
cago 

Tables  CHI,  CIV 192,  193 

Husbands 

Relative  ages  of  wives  to  (see  age, 

wife's) 
Hypotheses 

(see  assumptions) 

Illinois  State  Teachers'  Pension  and 
Retirement  Fund 

Actuarial   report   on 161 

Discussion  of  results 164 

Number      eligible      for      pensions, 

Table   LXVII    165 

Statistical  tables,  XCIV- 

XCVII     186-188 

Summary    of    details    of    present 

and  probable  cost 17 

Treatment  of  fund 73 

Importance    of    pension    problem    in 
Illinois    

Interest  rate  adopted  (see  rate) 

Joliet 

Firemen,  Table  CXVIII 199 

Policemen,  Table  CXVIII 199 

Laws,  pension 

Comparison    of    in    United    States 

and   Europe 19 

Enumeration  of,  in  all  states....  43 
In  foreign  countries,  Chapter  II..  19 
Other  states  and  countries 

plan    of    collecting    information 
regarding   8 


308 


INDEX— Continued. 


PAGE 

Laws,   pension — Concluded. 
Of  Illinois 

Comparison  with   Great  Britain     25 
Extent    of  present  and    possible 

future    18 

Plan  of  investigating  operation.        6 
Survey     of,    with     comparative 
references     to    provisions     in 
laws  of  other  states,  Chapter 

IV    42 

Summary  of  existing 10 

Tabular  digest  of .   241 

(see    amendatory    pension    leg- 
islation, proposed) 

Liabilities  (see  balance  sheets) 

London  police 

Pensions  and  gratuities 23 

Management  of  funds 
(see  funds) 

Marital  condition 
Classification  of 

Firemen,    Table   LXXV 171 

Policemen,  Table  LXXX 175 

Massachusetts 

Report     of    Commission    on     Pen- 
sions          43 

Methods  of  providing  funds  for  pay- 
ing pensions 
Advantages      of      "reserve"      plan 

over  "cash  disbursement"  plan  281 
Under    "cash    disbursement"    plan  280 

Under    "reserve"    plan 280 

Under    unscientific    plans    in    Illi- 
nois         280 

Moline 

Policemen,    Table    CXVII 198 

Monetary  tables 

Plan   of   exhibiting 79 

Mortality  tables 

(see  rates) 

Municipal  Employees'  Fund  of  Chi- 
cago 

Actuarial     report    on 147 

Limited     experience      for     predic- 
tions          72 

Statistical       tables        LXXXIX- 

XCIII    182-185 

Summary    of    details    of    present 

and    probable    cost.  .  .  . 17 

Oak    Park,    Village    of 

Firemen,    Table    CXVIII 199 

Occupations  of  employees 

Municipal,    Table   LXXXIX 182 

Outline 

for     proposed      standard     pension 

plan    summary)     -. 285 

Parents 

(see   dependents) 
Park   policemen,    Chicago 

Tables    XCVIII-XCIX    189,  190 

Pension 

Amount    of 

in     foreign        countries      (sum- 
mary)            35 

in  Illinois  and  other  states.  .  60-62 
under    proposed    standard    pen- 
sion  plan   (see  benefit) 
Conditions   for 

Children's  in  Illinois  and  other 

states     68 

Disability   in  Illinois  and  other 

states     58 

(see    service;    age) 


PAGE 

Pension — Concluded. 
Considered   as 

Deferred   pay    23,  25 

Reward   for    service 53,  71 

Funds 

(see  funds) 
Laws 
(see  laws) 
Non-contributory 
effect  on  wages  in 

foreign    countries    35 

the  United  States 53 

Provisions    for    discontinuance    of 

in  Illinois  and  other  states..          64 
Scales 

Firemen,    Table    XXIV..  .    108 

Policemen,    Table    VII 87 

Teachers,         Chicago,         Table 

XLIII    131 

Systems,    Foreign 

(see  foreign) 
Pensioners 

Classes  of,  Present  and  Future 

Firemen, 112 

Policemen     91 

Teachers,   Chicago   132 

Number  and  pensions   to 

Firemen    13 

Municipal    employees    17 

Policemen    11 

Teachers,    Chicago     15 

Teachers,    State    17 

Children 

Firemen,    number     of    families, 

Table    XI     91 

Policemen,    number     and    aver- 
age   pension,    Table   XXVIII.    Ill 
Disability 

Average  time  on  pension  roll 

Firemen,    Table    XXIII.  . 108 

Number  and  average  pension 

Firemen,    Table    XXVI 110 

Policemen,   Table   IX 89 

Teachers,       Chicago       (female) 

Table  XLV    131 

Under    proposed    standard    pen- 
sion   plan     290 

(see  experience,  actual  of) 
Service 
Average  time  on  roll 

Firemen,    Table   XXII 107 

Policemen,    Table    VI 86 

Number  and  pension  of 

Firemen,    Table    XXV 109 

Policemen,    Table    VIII 88 

Teachers,    Chicago,     (female) 

Table  XLIV    131 

Teachers,      Chicago,       (male) 

Table  XLVI    135 

Widow 

Conditions      for      pension      and 
amount  of  pension   in 

Illinois     64 

Other    states    65,68 

Number   and    pensions   to 

Firemen,    Table    XXVII Ill 

Policemen,   Table   X 90 

Peoria 

Firemen,    Table    CIX 195 

Policemen,    Table   CXVIII 199 

Teachers,    Tables    CVII,  CVIII.  .  .    195 

Police 

General  pensions   for   in  Illinois.  .      37 

Police   Fund   of   Chicago 

Actuarial   report   on 81 

Statistics     of,      Tables      LXXII- 

LXXVI    169-172 

Summary    of   present   and    proba- 
ble cost    11 


309 


INDEX— Continued. 


PAGE 

Powers,    punching  and   sorting-  ma- 
chines          79 

MI   cost  of  pensions 
(see  costs) 

Principles      of      standard      pension, 
underlying     271 

Probabilities 
(see  rates) 

Bed    pension    legislation 
(see   amendatory   pension   legisla- 
tion,     also     standard     pension 
plan) 

Public   Library   Employees,   Chicago 
Tables    CV-CVI    193,  194 

Public  School  Employees,  Chicago 

Pensions    for    (Historical) 37 

Tables   C-CII    .  . 191,  192 

Public   Service   Employees   (see   em- 
ployees) 
Punch  card 

Copy  of    78 

(Questions  for  further  study 
(see  recommendations; 
ionnaires 

Used  in  collection  of  data 74-76 

Rate  of  interest 

Assumed  in  calculations 80 

Rates 

comparison     of     among     Firemen 

and    Policemen     113 

required      for      determination      of 
future  costs 

General,    all    funds 73 

Firemen    and    Policemen 74 

and    Probabilities     (of    mortality, 
withdrawal,      pension     retire- 
ment,  return   to   service,   etc) 
Firemen,     Table    XX,     p.      106, 

text    108 

Municipal       Employees,       Table 

LV   148 

Policemen,      Table    IV,    p.      85, 

text    86,  87,  91,  92 

Teachers,         Chicago,         Tables 
XXXVII,    XXXVIII,   pp.    125, 

126,    text    125,  128 

T.-i-hers    State    162 

R.-itio  of  benefits  purchased  by  con- 
tributions of  employees  to 
total  benefits 

Municipal  Table  LVII 150 

Reasons     for     developing     standard 

pension  plan    271 

Recommendations 

for     further      study     of     pension 

problem   in    Illinois 303 

(see  standard  pension  plan) 

Plan  of  determining  on 9 

Refunds 

Historical  sketch    39 

Illinois   funds    53 

Other  states    54 

Teachers,    Chicago    133 

Under  proposed   standard   pension 

plan     290 

Relative  ages 

Husbands     and    wives     (see    age, 

wife's) 
"Reserve"  plan 

Adopted     for     proposed     standard 

pension   plan   280 

(see       methods       of       providing 
funds) 


PAGES 
Reserves  for  future  force 

Firemen     115 

Policemen     94 

(see  cost  of  pensions) 

Rockford 

Firemen,    Table    CXI 196 

Policemen,   Table   CXII 196 

Revenue 
Sources  of 

Combination      of    all    in     other 

states    52 

From  employees  in  Illinois  and 

other    states    49 

Historical     38 

Other    than    employees'    contri- 
butions 

in   Illinois    50 

other  states 51 

Municipal  employees,   for 147 

(see  Appendix  "B"  also  methods 
of  providing  funds  for  paying 
pensions) 
Revocation  of  Pension 

Provisions  for,  see  Appendix  "B" 
Salaries  of  employees 

Classified  by  years  of  service 
(see    statistics    under    name    of 

fund) 
Salary 

Ratio  of  cost  of  pensions  to 

Firemen    114 

Municipal  employees 157 

Policemen     94 

Teachers,    Chicago    134 

Scales 

(see  active  service) 
Service 

Active    Tables    and    salary    scales 

(see  active  service) 
Length    of    employees    (see    sta- 
tistics  under   name  of  fund) 
Pensioners    (see   pensioners) 
Requirements   for  pension  in 

Illinois    (Historical)    39 

(see  Appendix  "B") 
Schedules 

(see  Questionnaires) 
Solvency 

(see  balance  sheets) 
Sources  of  revenue 

(see  revenue) 
Sprijngfleld 

Firemen,    Table    CXVIII 199 

Policemen,  Table  CX 196 

Standard  Pension  Plan,  proposed 
Actuarial     computations     showing 

results  to  be  expected  under.    295 

Table    used    for 295 

Age   of   retirement   and   length    of 

service    required   for   pension..    296 
Amount  of  pension 

Minimum,    general    289 

specific     289 

Sur-pension,    general    289 

specific    289 

for      male      employees,      Table 

CXXVIII    297 

for     female     employees,     Table 

CXXIX     298 

Beneficiaries,  who  should  be 

general   275 

specific    275 

Benefits  under  to 

Employee    .  . ' 274 

Public  service 273 

Changing    existing    funds    to    ac- 
cord with 285 


310 


INDEX— Continued. 


PAGE 

Standard  Pension  Plan — Concluded. 
Contributions  of 

Employees,   effect  on   salaries..    282 
Employee  and  employer  under 

general    283 

specific 283 

Cost  of  pensions  under 

Tables   CXXIV-CXXIX    ...    296-298 
Disability    pensions    under,    with 
Disability     incurred     in     per- 
formance of  duty 290 

Disability  not  incurred  in  per- 
formance of  duty 291 

Equities,   protection  of 

(see  refunds) 
Management  of  funds 

general   ' 284 

specific    292 

Methods  of  providing-  funds  for 

paying  pensions 
Under      "cash      disbursement" 

plan    280 

Under  "reserve"  plan 280 

Unscientific   plans   in   Illinois.    280 
Advantage    of    "reserve"    plan 
over     "cash     disbursement" 

plan    281 

Refunds  of  contributions 

general     284 

specific    290 

cost  of 296 

Reserve  plan  to  be  adopted.  .  .  .  287 
Surplus,  in  fund,  disposal  of.  .  .  292 
Widows  and  children  of  deceased 

employees 

Relative   cost   of  pensions   for  276 
Workmen's    Compensation   Act 

Inadequacy  of 275 

Statistics 
Relating   to 

Existing  Illinois   funds,   Chap. 

VI    168 

(Above  are  indexed  under 
name  of  city  where  fund 
exists) 

Illinois  Public  Service  Em- 
ployees, Chap.  VII 200 


PAGE 
Sterling 

Firemen,    Table   CXVIII 199 

Surplus,  in  fund 

Disposal      of      under      proposed 
standard  pension   plan 292 

Survivors 

Pensions    for    in    Illinois     (His- 
torical)           40 

Systems 

Illinois   Pension 272 

(see    Laws,    Pension — Illinois) 
Tabulation 

Of  employees  and  pensioners 
(see,  active  service;  statistics 
and  individual  funds) 

Teachers'  Fund  of  Chicago 

Actuarial  report  on 124 

Statistical,       Tables       LXXXIII- 

LXXXVIII     177-181 

Summary   of   details    of   present 

and   probable  cost 15 

Teachers 
Illinois 

Pensions   for    (Historical) 37 

Valuation 

Actuarial  (see  balance  sheets) 

Reasons  for  giving  yearly 80 

Reported  to  nearest  dollar 81 

Widows 

(see  Pensioners,  also  under  stand- 
ard  pension   plan) 
Withdrawal  rate 

(see  rates) 
Wives 

relative  ages  to  husbands 
(see  age,  wife's) 
Workmen's  Compensation  Act 

Exclusion  of  pension  beneficiaries 

by    40 

Inadequancy    of,     and    considera- 
tion   of    in    proposed    standard 

pension   plan    299 

Not  a  pension  law 10,  42 


YC  36159. 


